Sen. Richard Blumenthal (D-Conn.) has asked the Department of Justice and FinCEN for changes in the role of regulators to oversee Binance, citing concerns about exchange compliance and claims of weak anti-money laundering controls, according to Chance to announce.
In a letter sent on Friday, Blumenthal mentioned reports of Iranian-linked crypto I doubt whether Binance’s regulatory framework is working as intended.
As part of a 2023 settlement related to sanctions and money laundering violations, the exchange agreed to pay $4.3 billion in fines and agree to two independent auditors — one reporting to the DOJ and the other to FinCEN — overseeing its changes starting in 2024.
The senator’s inquiry follows media reports that say internal auditors on Binance was expelled after the flag of more than $ 1 billion in transactions related to Iranian wallets, which the company opposes.
It also comes amid heightened scrutiny of federal regulators, who have been criticized for their effectiveness and cost, and the DOJ has said it has reviewed or halted other corporate oversight programs.
Senate Democrats are also urging the DOJ, Treasury to investigate Binance
Earlier this year, in a letter sent to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, a group of US senators. to be invited that Binance’s “prompt, thorough review” of sanctions and money-laundering controls, citing concerns over the exchange’s handling of illegal money laundering risks.
The letter, led by Sen. Mark Warner and agreed with the Position member Elizabeth Warren along with Sens. Chris Van Hollen, Jack Reed, Catherine Cortez Masto, Tina Smith, Raphael Warnock, Andy Kim, Ruben Gallego, Lisa Blunt Rochester, and Angela Alsobrooks, show that the follow-up inside has been reported to identify about 7 billions connected to cryptona in Iran cryptona. Blumenthal’s research.
According to the senators, another case involved the trader Binance, which is said to support $ 1.2 billion in transfers linked to organizations linked to Iran. The letter also claims that Iranian users have accessed more than 1,500 Binance accounts and that the platform may have also been used by Russian players to evade sanctions.
The legislators also complained that employees who showed questionable activities were fired and that Binance stopped responding to legal requests, which could affect their obligations under its 2023 contract.
Binance already he pleaded guilty of breaching sanctions-busting laws and failing to spend money, agreeing to more than $4 billion in penalties and implementing broader reforms led by the US, including improving KYC and sanctions monitoring systems.
The legislators say that the latest statements raise serious questions about whether the changes have been implemented properly and are sustainable, warning that allowing such a flow would be against Binance’s promises to the Treasury Office of Foreign Assets Control.
