U.S. Senator Probes Binance Over Potential Sanctions Evasion

In a significant regulatory development, U.S. Senator Richard Blumenthal has initiated a formal Senate inquiry into cryptocurrency giant Binance's compliance practices. The investigation stems from allegations that the exchange facilitated approximately $1.7 billion in transactions linked to Iranian entities under U.S. sanctions and to covert operations by Russian oil tankers. Blumenthal's inquiry requests detailed information on how Binance has addressed its internal compliance procedures, especially in light of reports that compliance personnel who identified suspicious activities were marginalized or dismissed. While Binance has countered these allegations, stating it adheres to strict anti-money-laundering (AML) guidelines and has reduced such transactions by about 96%, the inquiry signals heightened scrutiny over the platform's practices in dealing with U.S. sanctions. This scrutiny coincides with broader concerns about the use of cryptocurrencies in circumventing international sanctions and AML regulations. Binance has insisted its operations remain in strict compliance with regulatory expectations, highlighting its cooperation with authorities and the proactive steps taken to mitigate exposure to sanctioned entities.