Key Takeaways
- Binance informed U.S. Senate investigators that no accounts directly transferred cryptocurrency to entities in Iran
- The platform discovered only secondary exposure to wallets potentially connected to Iran, which were subsequently terminated
- The exchange described coverage by NYT, WSJ, and Fortune as “demonstrably false” and defamatory
- Accounts linked to Hexa Whale and Blessed Trust were terminated following internal reviews
- The congressional probe comes amid questions about Trump administration connections to Binance through a $2 billion stablecoin transaction
The world’s leading cryptocurrency exchange, Binance, has issued a formal rebuttal to U.S. Senate investigators, asserting that its internal investigation uncovered zero instances of direct cryptocurrency transactions to Iranian-linked entities through its platform.
Dated March 6, the correspondence addressed Sen. Richard Blumenthal’s Permanent Subcommittee on Investigations and was copied to Sen. Ron Johnson. Eleven senators had initiated the investigation the previous month.
The congressional investigation was triggered by news reports alleging that Binance facilitated over $1 billion in cryptocurrency transactions connected to Iranian groups. The exchange has categorically rejected these characterizations.
According to Binance’s statement, their comprehensive internal audit revealed only secondary connections to digital wallets that might have Iranian associations. The exchange confirmed these accounts were promptly terminated.
The company pinpointed two specific entities involved in the flagged activity: Hexa Whale and Blessed Trust. According to Binance, Hexa Whale’s account was closed last August, while Blessed Trust was removed from the platform in January after thorough investigations concluded.
Binance stated that its review process began following contact from law enforcement authorities last April. Officials supplied a roster of external wallet addresses suspected of potential ties to terrorist financing activities.
The platform emphasized its full cooperation, supplying user information and transactional records to investigating authorities.
Exchange Challenges Mainstream Media Narratives
Binance directly challenged the journalism that triggered the Senate investigation. The exchange characterized reporting from the New York Times, Wall Street Journal, and Fortune as “demonstrably false” and defamatory in multiple significant ways.
These publications had reported that Binance dismissed employees who internally flagged concerns regarding the Iran-related transactions. Binance has refuted this characterization entirely.
The company clarified that most employee departures connected to this matter were voluntary resignations. A single employee was terminated, but Binance maintains the dismissal resulted from policy violations related to unauthorized external sharing of confidential user data.
“When there is credible risk information, Binance investigates, mitigates, offboards accounts, and reports to appropriate authorities,” the letter stated.
Congressional Investigation Unfolds During Period of Heightened Political Scrutiny
The senators’ correspondence to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi requested confirmation by March 13 regarding potential investigations into Binance. As of Friday, neither official had issued public statements.
Binance’s regulatory history with U.S. authorities is well documented. In 2023, the exchange settled charges involving sanctions violations and anti-money laundering law breaches for $4.3 billion. Former chief executive Changpeng Zhao resigned and entered a guilty plea to federal criminal charges, completing a four-month incarceration period.
Last October, President Trump issued a pardon for Zhao. This presidential action legally eliminated restrictions preventing Zhao from rejoining Binance leadership, though he has publicly stated he won’t resume the CEO position.
Congressional scrutiny of Trump’s Binance connections has intensified following a UAE-based firm, MGX, utilizing the USD1 stablecoin — created by World Liberty Financial, a venture backed by Trump and his family — to finalize 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 has not disclosed additional measures following Binance’s formal response.
