Sen. Richard Blumenthal launched a congressional inquiry into Binance following media reports that the exchange processed roughly $1.7 billion in transactions tied to sanctioned Iranian entities and Russia’s oil “shadow fleet.” Blumenthal sent a letter to CEO Richard Teng seeking communications, account records and internal compliance reports, citing links between Binance partners (Hexa Whale, Blessed Trust) and traced wallets to Iran’s IRGC and tanker crews evading Russian sanctions. Binance denied the allegations, highlighted suspicious-activity reporting and compliance changes, and noted reduced exposure to sanctioned jurisdictions. The probe references Binance’s 2023 $4.3 billion AML/sanctions settlement and sets a March 6 deadline for materials.

Congressional inquiry cites media reports alleging Binance processed ~$1.7B tied to sanctioned Iranian entities and Russia’s shadow fleet; senator requested internal communications and account records and referenced Binance’s 2023 $4.3B AML/sanctions settlement — facts increase regulatory/legal risk. Binance’s denial and claims of compliance changes are also noted.