Democrat Senator Launches $1.7B Iran Sanctions Probe Into Binance
Decrypt
by Callan QuinnFebruary 25, 2026
AI-Generated Deep Dive Summary
Senator Richard Blumenthal has launched a significant investigation into Binance, the world’s largest cryptocurrency exchange, over allegations of facilitating $1.7 billion in transactions linked to Iranian entities and Russia’s sanctions-evading oil trade. The probe was prompted by a Wall Street Journal report, which revealed that internal investigations at Binance uncovered transfers from its accounts to intermediaries connected to Iran, including entities tied to the Islamic Revolutionary Guards Corps and Yemen’s Houthi militants. Despite Binance’s stated ban on Iranian users, the report identified roughly 2,000 accounts associated with Iranian entities, raising concerns about compliance.
The investigation highlights claims that two Hong Kong-based partners, Hexa Whale and Blessed Trust, acted as conduits for some of these transactions. According to the WSJ, internal investigators found evidence of suspicious activity, including transfers to wallets linked to the Islamic Revolutionary Guards Corps and Russia’s oil trade. However, Binance has strongly denied any wrongdoing, accusing the WSJ of defamatory reporting and failing to acknowledge corrections provided by the exchange. In a legal letter, Binance demanded that the outlet retract its claims immediately.
This inquiry comes after Binance pleaded guilty in 2023 to violating U.S. anti-money-laundering laws and sanctions requirements, agreeing to pay $4.3 billion in penalties and exiting the U.S. market. Founder Changpeng “CZ” Zhao was sentenced to four months in prison but received a presidential pardon from Donald Trump. Despite this history
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Originally published on Decrypt on 2/25/2026