Binance has published a formal rebuttal to US Senator Richard Blumenthal, objecting to what the crypto exchange describes as false and defamatory claims in recent media coverage that has sparked a congressional investigation into its sanctions compliance program.
The letter, released March 6, was addressed to a member of the Senate Permanent Subcommittee on Investigations and copied to Chairman Ron Johnson, in response to Blumenthal’s February 24 letter.
That investigation drew heavily on reports published by the New York Times, Fortune, and the Wall Street Journal earlier this year, which raised questions about the exchange’s exposure to Iranian organizations and its internal handling of compliance concerns.
Binance’s legal representatives assert that the company maintains strict Know Your Customer principles and expressly prohibits users living or residing in Iran from accessing its platform.
The exchange acknowledged that two organizations highlighted in Senator Blumenthal’s letter, including Hexa Whale and the Blessed Trust, were indirectly exposed to wallet addresses with possible ties to Iran but insisted they did not work directly with an Iran-based group.
“Binance has a strong and growing compliance program,” the company said in its response, adding that when credible information about a risk comes to light, it investigates, mitigates exposure, deletes accounts, and reports findings to appropriate authorities.
The exchange outlined a timeline for the investigation of both flagged entities. Legal inquiries in April 2025 initiated a comprehensive internal review that led to the release of Hexa Whale from the platform in August 2025.
A separate investigation prompted by legal requests in the summer of 2025 led to the exit of the Blessed Trust in January 2026. Binance emphasized that its investigators continue to evaluate potential risks even after filling preliminary information requests from the authorities.
Binance has revealed significant investments in its compliance infrastructure, claiming hundreds of millions of dollars in spending in recent years.
The change now employs more than 1,500 compliance professionals around the world, including experts in sanctions enforcement, counter-terrorism financing, and financial crime investigations. The company used more than 25 third-party tools for customer engagement and transaction monitoring.
Performance metrics provided in the book show that Binance processed more than 71,000 law enforcement requests by 2025.
Over the past three years, the exchange has helped federal agencies seize more than $752 million in assets, about $579 million of which has been returned to US authorities.
Statistical data shows that its exposure to wallets suspected of being involved in illegal activity has decreased from about 0.3% of the total exchange value in January 2024 to only 0.009% in July 2025, a decrease of about 97%.
In addition, exposure to crypto exchanges has decreased by 97% over two years, from more than $4 million to $110,000.
The objection directly contradicted the Wall Street Journal’s claim that Binance’s compliance teams identified 2,000 accounts associated with Iranian entities on its platform.
Binance called this assertion false and suggested that this figure may be related to ongoing efforts to tighten controls on the use of private networks rather than any determination regarding Iranian account holders.
The exchange noted that identity verification remains mandatory for all customers and that using a VPN to bypass eligibility requirements violates its terms of service.
Labor issues also drew attention in the response.
The company acknowledged that some compliance workers and contractors had recently left, but denied that any firings were the result of concerns over growth.
The company disclosed that one employee was terminated following an internal investigation that found unauthorized disclosure of internal user information, characterizing this as a violation of user privacy policies rather than retaliation.
Binance’s opposition comes at a time of growing regulatory pressure on major crypto platforms. The exchange’s decision to publish its response to Congress reflects an effort to be more transparent as it deals with compliance issues.
