Sen. Blumenthal probes Binance over alleged $1.7 billion in crypto Iran-linked transactions

CoinDesk

by Olivier Acuna

February 25, 2026

AI-Generated Deep Dive Summary

U.S. Senator Richard Blumenthal has launched an investigation into Binance, the world’s largest cryptocurrency exchange, over allegations of $1.7 billion in transactions linked to Iranian entities, including Yemen’s Houthi militants. The probe follows reports that internal investigators who flagged these alleged violations were subsequently dismissed. In a letter sent to Binance co-chief Richard Teng, Blumenthal requested records detailing the exchange’s dealings with two Hong Kong entities identified as sources of the transfers to Iran. Binance has strongly denied the allegations, stating that its know-your-customer (KYC) and compliance procedures are strict, and there are no Iranian users on its platform. The exchange also reiterated its opposition to false claims made in recent media reports. However, Blumenthal expressed concerns that Binance may have ignored warnings about potential money laundering schemes on its platform. The investigation comes amid ongoing scrutiny of Binance’s compliance practices. Earlier this year, the company agreed to pay $4.3 billion in penalties after admitting to violating anti-money-laundering laws and allowing transactions with customers from sanctioned countries, including Iran. While Binance has sought to distance itself from these allegations, critics argue that its history of non-compliance raises serious questions about its current operations. Blumenthal’s probe highlights the growing regulatory focus on cryptocurrency exchanges and their role in facilitating potentially illegal activities. The senator emphasized the importance of preventing money laundering and ensuring adherence to sanctions laws, particularly given the risks posed by transfers

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Originally published on CoinDesk on 2/25/2026