Senator Demands Binance Spill Beans on $1.7B Iran Cash Cow

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A U.S. Senator, with the subtlety of a bear in a teacup, has stirred up a formal Senate Homeland Security Committee inquiry into Binance, accusing the exchange of playing financial jester to Iran’s sanctioned schemes-allegedly funneling $1.7 billion in crypto to entities whose idea of “terrorism” is probably just hating your taxes.

Investigating the Hong Kong Connection

U.S. Sen. Richard Blumenthal, D-Conn., has launched an inquiry into Binance following reports that the platform allegedly facilitated $1.7 billion in transactions to Iranian entities linked to terrorism. The investigation, opened Feb. 24 by the Senate Homeland Security Committee, centers on claims that Binance leadership ignored internal warnings from its own compliance team regarding massive money-laundering schemes-because who needs due diligence when you’re chasing crypto profits, right?

The inquiry follows reports from The New York Times and other outlets detailing how Binance investigators flagged a surge of cryptocurrency moving from the exchange to sanctioned Iranian targets. At the heart of the probe are two Hong Kong-based entities, including a Binance vendor known as Blessed Trust-a name that now sounds less like a financial institution and more like a cursed family heirloom. Internal whistleblowers reportedly identified these firms as the primary origin of the transfers, which is either a heroic act or a career-limiting move in the world of crypto.

“Binance appears to have ignored warnings and recommendations to prevent Iranian money laundering schemes on its cryptocurrency exchange,” Blumenthal wrote in a letter to Binance CEO Richard Teng. One wonders if the senator included a side note about hiring a compliance team with better communication skills.

The senator is also seeking to understand claims that Binance suspended or fired the investigators responsible for uncovering the Iranian link-a move that screams “cover-up” or “bad HR,” depending on your caffeine intake.

However, the cryptocurrency exchange has pushed back against allegations that it turned a blind eye to illegal activity. A company spokeswoman reportedly argued that the discovery of the suspicious transactions is evidence of the platform’s success-because nothing says “success” like catching your own fraud department red-handed. The spokeswoman revealed that Binance removed the accounts linked to the Iranian transactions and severed ties with Blessed Trust in January, which is either damage control or a new definition of “trust.” She also rejected accusations that the exchange targeted individuals who uncovered the transfers to entities linked to Tehran, a claim that could be true… or just a well-rehearsed corporate dance of denial.

To address the committee’s concerns, Blumenthal’s letter asks Binance to produce comprehensive records detailing the suspension and termination of the compliance personnel and investigators involved in the internal probe. Because nothing says “transparency” like demanding a mountain of paperwork from a company that thrives on anonymity.

FAQ ❓

  • Why is Binance under investigation? U.S. Sen. Blumenthal launched a probe into $1.7B in alleged Iran-linked transfers, because apparently, the U.S. government still hasn’t mastered the art of crypto accounting.
  • What triggered the Senate inquiry? Reports said Binance ignored compliance warnings about money-laundering schemes-proof that even in 2026, some companies still think “due diligence” is a suggestion, not a mandate.
  • How has Binance responded? The exchange claims it cut ties with Blessed Trust and removed flagged accounts. One can only imagine the internal memo: “Sorry, we’ll do better next time. Also, who’s on HR?”
  • What records has the Senate requested? Blumenthal asked for details on staff suspensions and internal probe actions. Because nothing says “justice” like a spreadsheet of employee firings.

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2026-02-27 01:27