Key Exchange Update
Update, March 13, 8:10 am UTC: This article has been updated with comments from a Binance spokesperson.
A group of Democratic senators say they will oversee a reported Justice Department investigation into possible Iran-related sanctions violations on the crypto exchange Binance.
Senators Chris Van Hollen, Elizabeth Warren and Ruben Gallego said in a joint statement on Thursday that they “will conduct oversight to ensure the Department of Justice conducts a serious investigation into Binance and holds the company accountable for any wrongdoing.”
The Wall Street Journal reported on Wednesday, citing people familiar with the matter, that the Justice Department was investigating Iran’s possible use of Binance to evade sanctions.
“Binance has an established track record of putting profits ahead of the law,” the senators said, adding that the report raised “serious concerns that the firm is again violating US sanctions laws, recklessly helping bankroll the activities of terrorist groups connected to Iran.”
A Binance spokesperson told Cointelegraph: “To be clear, we are not aware of any investigation.”
The spokesperson added: “As always, we continue to cooperate with regulators and law enforcement to establish the facts. However, we do not comment on the specifics of any interactions with the DOJ.”
Platform Context
The senators said that last month, they asked US Treasury Secretary Scott Bessent and US Attorney General Pam Bondi to investigate Binance over concerns about the movement of Iran-linked funds.
Binance sued the Wall Street Journal on Wednesday, claiming a report it published on Feb. 23 was defamatory.
What To Watch
The report said that Binance fired staff who flagged $1 billion worth of crypto tied to sanctioned Iranian entities, including Yemen’s Houthis and the Islamic Revolutionary Guard Corps.
Binance denied that it had stopped any investigation and said the Wall Street Journal’s report was false.
Binance had pleaded guilty in November 2023 to violating US anti-money-laundering and sanctions laws, paying a record $4.3 billion fine and agreeing to operate under US oversight.
Former Binance CEO Changpeng Zhao pleaded guilty to a money laundering-related charge and was sentenced to four months in jail in 2024.
US President Donald Trump pardoned Zhao in October.
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