US senator launches probe into Binance over Iran, Russia sanctions claims

CoinTelegraph

by Amin Haqshanas

February 25, 2026

AI-Generated Deep Dive Summary

A senior US senator has launched a congressional inquiry into cryptocurrency exchange Binance, accusing the platform of processing $1.7 billion in transactions linked to sanctioned Iranian entities and Russia’s oil “shadow fleet.” Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Binance CEO Richard Teng requesting detailed documents and internal records related to the company’s sanctions compliance practices. The investigation comes after reports from major news outlets, including the Wall Street Journal, New York Times, and Fortune, revealed that Binance had identified intermediaries like Hexa Whale and Blessed Trust as enablers of trade with Iranian government-linked organizations. Internal investigations also reportedly traced transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps and payments to crews operating tankers used to circumvent sanctions on Russian oil exports. The allegations have sparked concerns about the transparency and regulatory oversight of cryptocurrency exchanges, which are often used to bypass traditional financial systems and sanctions. Crypto platforms like Binance operate in a largely unregulated space, making them vulnerable to misuse by sanctioned entities seeking alternative payment channels. The investigation highlights the growing scrutiny placed on the crypto industry by US regulators, who are increasingly focused on ensuring that digital assets do not become a tool for evading international sanctions. Binance has rejected the allegations, stating that it enforces strict compliance procedures, flags suspicious activity, and does not permit Iranian users on its platform. The company emphasized its commitment to adhering to global sanctions and regulatory requirements. However, the investigation underscores the challenges faced by crypto exchanges in balancing innovation with compliance, particularly as they operate across jurisdictions with varying legal frameworks. This probe is significant for the crypto industry, as it raises questions about how digital asset platforms can effectively prevent the misuse of their services for sanctioned transactions. It also highlights the need for greater transparency and accountability in the sector, which is critical to maintaining public trust and ensuring that cryptocurrency does not become a haven

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Originally published on CoinTelegraph on 2/25/2026