Senator Richard Blumenthal, a Democrat representing Connecticut, initiated a formal inquiry into Binance, the world’s largest cryptocurrency exchange, on Tuesday, February 24, 2026, demanding information regarding approximately $1.7 billion in transactions linked to Iranian entities. The inquiry, detailed in a letter to Binance CEO Richard Teng, centers on allegations that the exchange facilitated financial flows potentially violating U.S. Sanctions.
Blumenthal, Ranking Member of the Senate Permanent Subcommittee on Investigations (PSI), is requesting records related to the alleged transactions, as well as details surrounding the termination of Binance compliance personnel who reportedly raised concerns about illicit activity on the platform. According to reports from the Wall Street Journal, the Modern York Times, and Fortune, Binance compliance staff identified two partners, Hexa Whale and Blessed Trust, as intermediaries used to launder money and enable trade with Iranian government entities during 2024 and 2025.
The Senator’s letter specifically asks for documentation regarding approximately $500 million allegedly transferred through Hexa Whale Trading, with a portion ultimately reaching groups backed by Iran, including Yemen’s Houthi militants. The inquiry follows recent reporting that Binance compliance teams flagged over 1,500 accounts accessed from Iran.
Binance has maintained that it did not violate sanctions laws in connection with the transactions. A company spokesperson stated the exchange disputes reports that investigators were dismissed for raising concerns. Still, Blumenthal’s inquiry raises questions about the effectiveness of Binance’s compliance procedures and its ability to prevent illicit financial flows, particularly given the complex regulatory environment surrounding cryptocurrency.
The timing of the investigation is notable, coming shortly after former President Donald Trump pardoned Changpeng Zhao, Binance’s founder, last fall. Reports indicate that Binance is now described as a “vital engine” for cryptocurrency ventures associated with the Trump family, and that the Trump administration previously offered a degree of leniency regarding prior sanctions violations by the exchange.
Senator Blumenthal’s inquiry builds on a 2024 guilty plea by Binance to failing to register as a money transmitting business and breaching sanctions. The Senator has requested a response from Binance by March 10, 2026, according to sources familiar with the letter.
