Binance slams $1.7bn Iran probe from US Senators, calls reports ‘defamatory’

Binance’s lawyers have slammed allegations that the firm helped Iranian entities launder money on its platform, and called evidence cited in a probe by US Senators “defamatory.”

Last month, the Committee on Homeland Security and Governmental Affairs urged Binance to provide key records regarding alleged connections between the exchange and terrorist organisations working on behalf of Iran.

The Committee’s probe came after Fortune, The Wall Street Journal, and The New York Times, cited anonymous sources and internal documents in reports claiming Binance ignored internal warnings that sanctioned entities used the platform to launder nearly $2 billion.

“The recent reporting on which your inquiry relies, however, is demonstrably false, unsupported by credible evidence, and defamatory in several material respects,” Binance’s legal team said in a Friday statement addressed to Connecticut Senator Richard Blumenthal of the Democratic Party, who’s helping lead the probe.

DL News reached out to both Binance and the law firm representing the company for comment.

The letter

In February, over a dozen US senators signed a letter written by Senator Blumenthal that said Binance “appears to have ignored warnings and recommendations to prevent Iranian money laundering schemes.”

The letter cited newspaper reports alleging Binance ignored internal warnings that sanctioned entities used the platform to launder nearly $2 billion in funds.

The news reports also alleged that company partners Hexa Whale and Blessed Trust operated as intermediaries on behalf of Iranian government entities.

Binance’s legal team said that “a rigorous compliance program” and “strict Know Your Customer” procedures prohibit users residing or located in Iran on the platform. It also said that Binance has reduced exposure to Iranian exchanges by over 97%.

Previous failures

Binance has been in hot water over Iran before.

Back in 2023, the exchange admitted it had failed to prevent criminals, sanctioned entities, and other bad actors from laundering billions of dollars in dirty money, according to court filings.

Iran was among the sanctioned entities, Department of Justice investigators said.

The DOJ fined the company $4.3 billion and ordered a three-year third-party monitor to oversee its operations.

Binance’s CEO at the time, Changpeng Zhao, pleaded guilty to violating US laws against money laundering charges and served four months in prison in 2024.

US President Donald Trump pardoned Zhao in 2025.

Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.