U.S. lawmakers are calling on regulators to investigate Binance over the alleged transfer of $1.7 billion to Iranian-linked entities. These concerns come at a particularly interesting time, amid heightened geopolitical tensions in the Middle East. However, Binance has already refuted such claims.
In a letter, 11 members of Congress, led by Sens. Chris Van Hollen and Elizabeth Warren, called on Treasury Secretary Scott Bessent and Attorney General Pam Bondi to launch a formal investigation.
US lawmaker warns that Binance surveillance could be at risk
Senators expressed serious concerns about Binance’s strength Guardrails against illegal finance and their compliance, sanctions and anti-money laundering measures law.
“These allegations raise grave concerns that Binance’s poor illegal financial controls remain a serious threat to national security. When large sums of money can flow through Binance to terrorist groups and sanctions evaders, our country’s illegal financial controls are at risk. The company controls the world’s largest digital asset exchange, and it is important that bad actors cannot profit from its platform,” the lawmakers said.
Investigators found at least two Binance accounts, according to a report cited by lawmakers. These accounts were used to channel assets to organizations associated with the Iranian-backed Houthis and the Islamic Revolutionary Guard Corps.
Additionally, the report claims that Iranian nationals have successfully gained access to over 1,500 Binance accounts.
The senators described the incident as indicative of a “pervasive deterioration” in Binance’s compliance capabilities. They warned that the movement of funds directly threatens the exchange’s historic 2023 settlement with U.S. authorities.
Under the plea agreement, Binance paid a $4.3 billion fine and founder Qiao Changpeng resigned as CEO. The company also agreed to strict oversight by an independent compliance monitor mandated by the Department of Justice.
Lawmakers argued that the alleged illegal transfers were consistent with a broader pattern of dangerous activity.
They highlight that Binance has started issuing payment cards in some parts of the former Soviet Union, which they argue provides a backdoor for Russian companies to circumvent international sanctions.
“Given these issues, we are deeply concerned by the prospect that Binance may once again prioritize profits over compliance obligations,” the lawmakers argued.
Recognizing this situation as a serious national security threat, the senators asked the Treasury Department and the Department of Justice to provide details of their findings by March 13, 2026.
If authorities determine that Binance has violated the 2023 monitoring conditions, the exchange could face devastating legal and financial consequences.
Binance touts compliance efforts
In a fierce rebuttal to the allegations, Binance defended its internal controls and noted that illegal activity on its platform has declined sharply.
The company said its sanctions-related exposure decreased by 96.8% over 18 months, from 0.284% in January 2024 to just 0.009% in July 2025.
The company has combined this progress with its “best-in-class” compliance program. A recent report claimed to present a distorted view that fundamentally misunderstands standard management processes for digital asset platforms.
Binance said it acted proactively to mitigate risk, offboard offending accounts, and cooperate with law enforcement in specific incidents covered in the media.
“The facts are: Binance’s compliance program is effective and worked here. Any statement to the contrary is simply false,” the exchange concluded.
