Eleven Democratic senators have asked U.S. federal agencies to investigate alleged illicit finance tied to Binance and determine whether the exchange remains in compliance with obligations from its 2023 federal settlement. The request was made in a letter sent Friday to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, according to reporting cited in the source material.
The letter came from members of the Senate Banking, Housing, and Urban Affairs Committee. Sen. Mark Warner led the effort, and Ranking Member Elizabeth Warren signed on alongside Catherine Cortez Masto, Ruben Gallego, Angela Alsobrooks, and others. Their concern centers on whether Binance has upheld anti-money laundering and sanctions controls after agreeing to operate under U.S. oversight.
Lawmakers cite $1.7 billion in alleged Iran-linked digital asset activity
According to the letter, Binance compliance staff identified evidence last year involving about $1.7 billion in digital assets that allegedly moved to Iranian entities, including the Houthis and Iran’s Revolutionary Guard Corps. In one instance cited by lawmakers, a Binance vendor allegedly routed $1.2 billion linked to Iran-connected actors.
The senators also pointed to reports that Iranian users accessed more than 1,500 Binance accounts. They added that Russian actors may also have used the platform to evade sanctions. Taken together, those claims raise a narrow but serious question: whether the compliance controls Binance promised to strengthen were actually maintained after the settlement.
Fresh scrutiny follows Binance’s 2023 settlement worth over $4 billion
In 2023, Binance pleaded guilty to federal charges related to sanctions and anti-money laundering failures. The company agreed to pay more than $4 billion and to carry out reforms under U.S. supervision. Those reforms included stronger sanctions screening and tighter know-your-customer procedures.
The senators argued that newer reports cast doubt on those commitments. They said Binance dismissed or lost compliance personnel who had flagged suspicious transactions, and that the exchange had become less responsive to law enforcement requests. Their letter asks the Justice Department and Treasury to review whether Binance still meets its obligations under agreements with the DOJ and the Treasury’s Office of Foreign Assets Control, or OFAC.
Letter also points to Trump-linked business ties and Zhao pardon
The lawmakers also referenced Binance’s recent business links involving President Donald Trump and his family’s crypto ventures. They specifically cited Binance’s promotion of USD1, a stablecoin tied to World Liberty Financial.
According to the letter, Binance offered incentives, provided technical support, and accepted a $2 billion investment linked to the token. The senators also referenced Trump’s reported pardon of Binance founder Changpeng Zhao last fall. They asked Bondi and Bessent to respond by March 13, 2026.