A new political storm is building around Binance, the world’s largest crypto exchange. Senator Richard Blumenthal has formally launched an inquiry after media investigations claimed that large sums of money moved through the platform to entities connected to Iran and Russia.
The senator, who serves as ranking member of the Senate Permanent Subcommittee on Investigations, sent a letter to Binance chief executive Richard Teng demanding answers. At the center of the inquiry are reports that about $1.7 billion in crypto transactions may have been tied to Iranian proxies and to vessels linked to Russia’s so called shadow fleet, which has been accused of bypassing oil sanctions.
In his letter, Blumenthal did not soften his tone. “Binance is a repeat offender,” he wrote, arguing that the exchange has long known that sanctioned actors use its platform to move funds outside traditional banking controls. His message was that after past legal trouble, the company shouldn’t be facing similar questions again.
Jemi Motesho
Questions About Binance’s Compliance and Internal Warnings
Beyond the transactions themselves, Senator Blumenthal is also asking about Binance’s internal culture. Reports claim that employees who flagged suspicious activity were later suspended or dismissed. The senator’s letter requests documents explaining how the company handled those warnings and why certain compliance staff were reportedly sidelined.
This part of the inquiry may prove just as important as the financial details. In large financial institutions, internal investigators play a key role in spotting risks early. If those employees feel ignored or punished, it can weaken the entire compliance system.
Binance has strongly denied wrongdoing. Binance also denies that employees were dismissed simply for raising concerns, stating that any staffing decisions were related to policy breaches, not whistleblowing.
For Binance, the stakes are high. The company remains the largest exchange in the world by trading volume. After paying record fines and agreeing to strict monitoring, it has tried to present itself as a company that has turned a corner. Another major compliance scandal could damage that effort.
Jemi Motesho
