Binance Criticizes Senator Blumenthal’s Allegations, Criticizes False Claims
Binance officially responded to US Senator Richard Blumenthal (D-CT) after the conference a book when the lawyer cited media reports that the company had allowed major violations of US and international sanctions involving Iran.
In an open letter published on Friday, Binance denied the allegations and accused the senator of relying on what it described as false and defamatory reporting.
Binance Denies Allowing Iranian Money Laundering
Senator Blumenthal’s investigation referred to articles published in February 2026 by the New York Times, Fortune, and the Wall Street Journal.
Those reports, according to a member of parliament, suggested that Binance ignored warnings designed to prevent Iranian money laundering schemes and allowed about $1.7 billion in transfers linked to Iran.
In response, Binance said takes its legal and regulatory responsibilities seriously and shares the Senate’s stated interest in maintaining a safe trading platform. However, the company has disputed the accuracy of the reports cited in the book, calling it demonstrably false and defamatory in several important ways.
Binance has insisted that it remains stable Know Your Customer (KYC) and compliance procedures and expressly prohibits users living or residing in Iran from accessing its platform.
The exchange also responded to claims, repeated in a parliamentary letter and mentioned in the Wall Street Journal, that Binance compliance identified 2,000 accounts associated with Iranian entities despite its stated ban on Iranian users.
Binance has flatly denied making any such determination. The company said it enforces mandatory identity verification for all customers and does not intentionally log users with incomplete or inaccurate documents.
It suggested that the claim could stem from its ongoing efforts to tighten the controls related to the use of virtual private networks (VPNs). The company also said that any attempt to bypass eligibility requirements by using a VPN violates its terms of service.
Labor Movement Not Linked to Iran Probe
In addition to concerns about compliance, the senator’s letter referred to the media reports regarding the management of certain personnel involved in the investigation of the Hexa Whale and the Blessed Trust.
Binance said those reports contained significant inaccuracies and rejected suggestions that employees be fired due to growing compliance concerns.
Although it declined to disclose specific employee details due to privacy concerns, the company acknowledged that some compliant employees and contractors have recently left, most of them through voluntary resignations.
Binance reiterated that compatibility framework it keeps evolving and strengthening. The company said that when reliable information of an accident arises, it investigates carefully, releases accounts when necessary, and reports to the relevant authorities.
Regarding the issues raised in Blumenthal’s letter, Binance said its compliance programs are working as intended. The exchange pledged to continue to work with law enforcement and improve what it described as its broader mission to build the core infrastructure of the global crypto ecosystem.
Featured image from OpenArt, chart from TradingView.com
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