Senate Democrats Lead Inquiry Into Binance: Warren Heads Effort With Letter To DOJ
Cryptocurrency exchange Binance is once again facing mounting scrutiny in Washington, as lawmakers question whether the company is living up to the terms of its 2023 settlement with US authorities — an agreement that ultimately led to the resignation of its founder and former CEO, Changpeng Zhao (CZ).
Democrats Urge DOJ And Treasury Investigation
On Friday, journalist Eleanor Terrett of Crypto In America reported that eleven Democrats on the Senate Banking Committee, led by crypto-skeptic Elizabeth Warren, sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent urging their departments to examine Binance’s operations.
The lawmakers pointed to recent media reports alleging illicit finance activity on the platform, including transactions reportedly linked to Iran, and warned that such conduct could place Binance in violation of its 2023 settlement.
In their letter, the senators also referenced Binance’s expanding business relationships with President Donald Trump’s crypto ventures, as well as Trump’s pardon of Zhao. They called for what they described as a “thorough, impartial” investigation into whether the exchange is adhering to its legal obligations.
The latest pressure follows a separate inquiry launched earlier in the week. As previously reported by Bitcoinist, Democratic Senator Richard Blumenthal initiated a formal probe through the Senate’s Permanent Subcommittee on Investigations.
Binance Denies Sanctions Violations
In a letter dated February 24 and addressed to Binance co-CEO Richard Teng, Blumenthal cited reporting that suggested the exchange may have facilitated “large-scale violations” of US and international sanctions on Iran.
Blumenthal noted that Binance appeared to ignore warnings and recommendations aimed at reducing Iranian money laundering operations. He also referred to the same reports cited by the Senate banking committee Democrats, indicating that $1.7 billion in transactions to Iran may have passed through the platform.
Binance has strongly denied the allegations. The company said it conducted an internal review and found “no evidence of violations of applicable sanctions laws.” The exchange also rejected claims that it had dismissed investigators for raising concerns related to sanctions compliance.
Featured image from OpenArt, chart from TradingView.com
You May Also Like
BitGo wins BaFIN nod to offer regulated crypto trading in Europe
BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate. BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer crypto services to European investors. The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFIN, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto native companies in the European Union.Read more
Pepeto After Market Correction: 10,000% Forecast Dwarfs Solana, Cardano, and Ripple Potential
