Binance has pushed back strongly against U.S. Senator Richard Blumenthal after the lawmaker cited recent media reporting that alleged the exchange enabled large-scale sanctions evasion tied to Iran.
In an open letter published Friday, Binance rejected the claims as “demonstrably false and defamatory,” saying the senator relied on inaccurate reporting from February 2026 by The New York Times, Fortune and The Wall Street Journal. Those articles, Blumenthal’s inquiry said, suggested Binance ignored warnings about Iranian money‑laundering schemes and allowed roughly $1.7 billion in transfers linked to Iran.
Key points from Binance’s response
- Rejection of allegations: Binance said the reports mischaracterize the company’s practices and outcomes, and it disputed the central factual assertions in Blumenthal’s letter.
- Compliance stance: The exchange reiterated it takes legal and regulatory obligations seriously, enforces strict Know Your Customer (KYC) procedures, and expressly prohibits users located in Iran from accessing its platform.
- 2,000-account claim denied: Binance “flatly denied” a reported finding — attributed in the senator’s letter to The Wall Street Journal — that its compliance team had identified 2,000 accounts tied to Iranian entities. The company said it does not knowingly onboard users with incomplete or inaccurate ID documentation.
- VPNs and circumvention: Binance suggested some reports may have stemmed from its ongoing efforts to tighten controls around the use of virtual private networks (VPNs), noting that using a VPN to evade eligibility rules violates its terms of service.
- Employee treatment and departures: Responding to media accounts concerning staff involved in the Hexa Whale and Blessed Trust probes, Binance called those reports significantly inaccurate and denied that employees were dismissed for raising compliance concerns. While it would not disclose individual personnel details for privacy reasons, the exchange said several compliance staff and contractors have left recently — mostly via voluntary resignations.
- Ongoing enforcement and cooperation: Binance said its compliance framework is continually evolving and that, when credible risk information appears, it investigates, removes accounts if necessary, and reports to the appropriate authorities. The company defended the functioning of its systems and pledged to keep cooperating with law enforcement as it pursues its stated mission to build core infrastructure for the global crypto ecosystem.
The exchange’s letter frames the matter as a dispute over reporting and interpretation of internal compliance activity, while reaffirming its public commitments to KYC, sanctions controls and cooperation with regulators.
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