US lawmakers want regulators to investigate Binance over the alleged $1.7 billion in transfers to Iran-linked entities. The concerns come at a particularly interesting time amid rising geopolitical tensions in the Middle East. However, Binance has already refuted such allegations.
In a letter, 11 lawmakers led by Sens. Chris Van Hollen and Elizabeth Warren urged Treasury Secretary Scott Bessent and Attorney General Pam Bondi to launch a formal probe.
US Lawmakers Warn Binance Oversight May be at Risk
The senators raised serious concerns about the strength of Binance’s anti-illicit finance guardrails and its adherence to sanctions and anti-money laundering laws.
“These allegations raise grave concerns that poor illicit finance controls at Binance remain a significant threat to national security. Our illicit finance controls are dangerously compromised if enormous sums can flow through Binance to terrorist groups or sanctions evaders. The firm controls the world’s largest digital asset exchange; it is essential that bad actors cannot benefit from its platform,” the lawmakers stated.
According to reports cited by the lawmakers, investigators uncovered at least two Binance accounts. These accounts were used to channel assets to entities linked to the Iran-backed Houthis and the Islamic Revolutionary Guard Corps.
Furthermore, the reports alleged that Iranian nationals successfully accessed more than 1,500 Binance accounts.
The senators described the incident as indicative of a “broader deterioration” in Binance’s compliance functions. They warned that the fund movements directly threaten the exchange’s historic 2023 settlement with US authorities.
Under that plea agreement, Binance paid a $4.3 billion fine and its founder, Changpeng Zhao, stepped down as CEO. The company also agreed to stringent oversight by a DOJ-mandated independent compliance monitor.
The lawmakers argued the alleged illicit transfers align with a wider pattern of risky behavior.
They highlighted Binance’s launch of payment cards in parts of the former Soviet Union, which they claim provides a backdoor for Russian entities to evade international sanctions.
“In light of these issues, we are deeply troubled by the prospect that Binance may once again be prioritizing profits over its compliance obligations,” the lawmakers argued.
Labeling the situation a severe national security threat, the senators gave the Treasury Department and the DOJ until March 13, 2026, to detail the results of their investigations.
If authorities determine Binance breached its 2023 monitorship terms, the exchange could face catastrophic legal and financial repercussions.
Binance Touts Compliance Efforts
In a fierce rebuttal to the allegations, Binance defended its internal controls and noted a sharp decline in illicit activity on its platform.
According to the firm, its sanctions-related exposure dropped 96.8% over an 18-month period, falling from 0.284% in January 2024 to just 0.009% in July 2025.
The firm linked this progress to its “best-in-class” compliance program. It argued that the recent reports present a distorted viewpoint that fundamentally misunderstands standard control processes for digital asset platforms.
Binance stated that in the specific incidents cited by the media, it acted proactively, mitigated risks, offboarded the offending accounts, and coordinated with law enforcement.
“The facts are these: Binance’s compliance program is effective and it worked here. Any statement to the contrary is simply wrong,” the exchange concluded.
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