Sen. Richard Blumenthal (D-Conn.) has asked the Justice Department and FinCEN for updates on the status of monitors overseeing Binance, citing concerns about the exchange’s compliance program and allegations of weak anti-money laundering controls, according to Fortune reporting. The senator referenced reports of Iranian-linked crypto flows and questioned whether Binance’s oversight structure is functioning as intended.
As part of a 2023 settlement tied to sanctions and money laundering violations, Binance agreed to pay a $4.3 billion fine and accept two independent monitors — one reporting to the DOJ and another to FinCEN — to oversee its compliance reforms starting in 2024. The inquiry follows media reports alleging internal investigators at Binance were dismissed after flagging more than $1 billion in transactions linked to Iranian wallets, a claim the company disputes. It also comes amid broader scrutiny of federal monitorships and reports that the DOJ has reconsidered or paused some corporate oversight programs.
Senate Democrats urge for a DOJ, Treasury Binance probe
Earlier this year, a group of U.S. senators led by Sen. Mark Warner and joined by Ranking Member Elizabeth Warren and others called for a prompt, comprehensive review of Binance’s sanctions compliance and anti-money laundering controls. The letter points to internal compliance findings reportedly identifying roughly $1.7 billion in crypto transactions connected to Iranian actors. One case involved a Binance vendor allegedly facilitating $1.2 billion in transfers tied to Iran-linked entities. The letter further claims Iranian users accessed more than 1,500 Binance accounts and that the platform may also have been used by Russian actors to circumvent sanctions.
The lawmakers raised concerns that employees who flagged suspicious activity were dismissed and that Binance has become less responsive to law enforcement requests, potentially undermining obligations under its 2023 plea agreement. Binance previously pleaded guilty to federal violations involving sanctions breaches and anti-money laundering failures, agreeing to more than $4 billion in penalties and committing to extensive compliance reforms under U.S. oversight, including enhanced KYC and sanctions screening systems. The senators argue that the latest allegations raise serious questions about whether those reforms have been effectively implemented and sustained, warning that allowing such flows would conflict with Binance’s commitments to OFAC.