Key Points
- Binance informed U.S. Senate investigators it discovered no direct cryptocurrency transactions linking its platform to Iranian organizations
- The crypto exchange reports only indirect connections to potentially Iran-related wallets, both of which were terminated
- Binance labeled reporting from NYT, WSJ, and Fortune as “demonstrably false” and “defamatory”
- Accounts belonging to Hexa Whale and Blessed Trust were terminated following internal reviews
- Senate investigation also examines Trump-Binance connections related to a $2 billion stablecoin transaction
The world’s leading cryptocurrency exchange, Binance, has issued an official response to a U.S. Senate investigation, asserting that its comprehensive review uncovered zero instances of direct cryptocurrency transfers from platform accounts to Iranian organizations.
Dated March 6, Binance’s formal correspondence addressed Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations and Sen. Ron Johnson. The inquiry was initiated by a coalition of 11 senators during February.
The Senate’s investigation followed news coverage alleging that Binance had facilitated over $1 billion in cryptocurrency transactions involving Iran-connected organizations. Binance categorically rejected these characterizations.
According to the exchange’s statement, their comprehensive internal audit only identified indirect connections to digital wallets potentially associated with Iran. The company emphasized that all such accounts were promptly terminated and removed from their system.
The exchange pinpointed two specific entities central to the investigation: Hexa Whale and Blessed Trust. According to Binance’s timeline, Hexa Whale’s account was terminated last August, while Blessed Trust was removed from the platform in January following completed investigations.
Binance revealed that their internal review was initiated after law enforcement officials reached out to the company last April. Authorities supplied a catalog of external wallet addresses believed to have potential connections to terrorist financing activities.
The exchange emphasized its complete cooperation, furnishing investigators with comprehensive user records and detailed transaction information.
Exchange Challenges News Outlet Reporting
Binance strongly criticized the media reporting that triggered the Senate investigation. The platform characterized coverage from the New York Times, Wall Street Journal, and Fortune as “demonstrably false” and “defamatory in several material respects.”
These news outlets had reported that Binance had terminated employees who internally flagged concerns regarding the Iran-connected transactions. Binance firmly rejected these allegations.
According to the exchange, the majority of employee departures connected to this matter were voluntary resignations. While one staff member was terminated, Binance stated the dismissal resulted from violating company protocols by disclosing confidential user information to outside parties.
“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated.
Investigation Unfolds Against Backdrop of Trump-Binance Connections
The senators’ correspondence to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi demanded a response by March 13 regarding whether they intended to launch an investigation into Binance. As of Friday, neither official had issued public statements.
Binance has an established regulatory history in the United States. The exchange settled with U.S. authorities in 2023 for $4.3 billion over sanctions violations and failures in anti-money laundering compliance. Previous CEO Changpeng Zhao resigned and entered a guilty plea to felony charges, subsequently serving four months in federal custody.
Last October, President Trump issued a pardon for Zhao. The presidential pardon legally eliminated restrictions preventing Zhao from rejoining Binance leadership, although he has publicly stated he has no intention of resuming the CEO position.
Congressional scrutiny of Trump’s Binance connections intensified following MGX, a UAE-based entity, utilizing the USD1 stablecoin — created by World Liberty Financial, a venture backed by Trump and his sons — to complete a $2 billion investment in Binance. Several legislators have characterized this arrangement as presenting potential conflicts of interest.
As of March 6, the Senate subcommittee had not disclosed any additional measures in response to Binance’s official reply.
