USDBinance Denies $1 Billion Iran-Linked USDT Transfers as Blumenthal Launches Probe, Citing 97% Exposure Drop and $4.3 Billion Settlement History
Senate Inquiry, Staff Departures and Stablecoin Flows Put Exchange Back Under U.S. Spotlight
TL;DR
- Reports allege over $1 billion in USDT moved between March 2024 and August 2025 to Iranian-linked entities; Binance denies violations and disputes claims investigators were dismissed.
- Senator Richard Blumenthal has opened an inquiry, calling Binance a “repeat offender” and requesting documentation tied to Iranian users and sanctions compliance.
- Binance cites a 97% reduction in exposure since early 2024, says 25% of staff work in compliance, and references its prior $4.3 billion U.S. settlement.
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Binance is pushing back against reports that more than $1 billion in USDT stablecoins were routed to Iranian-linked entities between March 2024 and August 2025, as the exchange faces a new U.S. Senate inquiry over potential sanctions violations. The transactions were reported as being identified by internal compliance investigators who flagged suspicious activity tied to wallets and counterparties with Iranian connections. The transfers were largely conducted using Tether’s USDT on the Tron blockchain, a network cited in reports for its high-throughput and low-cost transactions.
Reports from The New York Times, Fortune, and The Wall Street Journal state that Binance-connected counterparties, including Hexa Whale and Blessed Trust, were allegedly involved in laundering funds for Iranian government-linked entities. The flagged flows were escalated internally by compliance staff with law-enforcement backgrounds and expertise in sanctions evasion and counter-terror financing. Some accounts referenced as many as 1,500 Iranian-accessed accounts identified during internal reviews, with certain wallets reportedly moving up to $1.7 billion across 2024–2025 to Iranian-linked groups.
Allegations that compliance investigators faced disciplinary measures or were dismissed after raising concerns have intensified scrutiny. At least five investigators were said to have departed beginning in late 2025, alongside other senior compliance personnel. Binance disputes that any staff actions were tied to whistleblowing or sanctions flagging and says no sanctions violations were found following internal reviews conducted with external legal counsel.
Chief Executive Richard Teng publicly rejected the allegations, describing them as “inaccurate,” “categorically false,” and defamatory. Binance’s legal team has sought corrections and retractions over reporting it says mischaracterized Iranian sanctions exposure and investigator dismissals. The company has stated it reported suspicious activity to authorities and emphasized expanded monitoring and enforcement controls following earlier regulatory actions.
Binance has cited a reduction in direct exposure to major Iranian crypto venues of around 97% since early 2024, representing 0.009% of total exchange volume. The company says about 25% of its global workforce now focuses on compliance, investigations, and risk management, and that it has invested hundreds of millions of dollars in sanctions enforcement and monitoring tools. The exchange references its prior U.S. resolution as part of its compliance overhaul.
That resolution followed a 2023 settlement in which Binance pleaded guilty to anti-money laundering and sanctions violations, including failing to properly register as a money transmitting business, and agreed to pay approximately $4.3 billion in penalties and forfeitures. The agreement subjected the exchange to independent compliance monitoring. Former CEO Changpeng Zhao pleaded guilty, served a four-month prison sentence, and later received a pardon from President Donald Trump in late 2025.
Senator Richard Blumenthal has launched an inquiry into Binance, requesting documentation on the use of its platform by individuals or entities connected to Iran. Blumenthal described Binance as a “repeat offender” and sought records tied to transaction monitoring, account closures, suspicious activity reporting, and internal responses to flagged Iranian-linked flows. The senator also raised concerns regarding Binance’s reported connections to World Liberty Financial, linked to President Trump’s family.
No new enforcement action tied specifically to the reported $1 billion in USDT transfers has been announced as of late February 2026. Binance maintains that its post-settlement compliance framework addresses sanctions risks and that internal investigations did not identify direct transactions with sanctioned entities.
This article has been refined and enhanced by ChatGPT.
