US Lawmakers Urge Probe Into Binance Over Alleged $1.7B Iran-Linked Transfers

A group of 11 US lawmakers has called on federal regulators to investigate Binance over allegations that roughly $1.7 billion in crypto transactions were linked to Iran-connected entities. The request, led by Senators Chris Van Hollen and Elizabeth Warren, comes amid heightened geopolitical tensions in the Middle East and renewed scrutiny of cryptocurrency exchanges and sanctions compliance.

In a formal letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, the senators urged authorities to launch a comprehensive investigation into Binance’s anti-money laundering (AML) controls and sanctions compliance framework. Lawmakers warned that weaknesses in Binance’s illicit finance safeguards could pose serious national security risks if sanctioned groups or terrorist organizations gain access to the platform.

Reports cited in the letter claim investigators identified at least two Binance accounts allegedly used to transfer digital assets to entities linked to the Iran-backed Houthis and the Islamic Revolutionary Guard Corps (IRGC). Additionally, Iranian nationals were reportedly able to access more than 1,500 Binance accounts, raising concerns about enforcement gaps.

The lawmakers argued that these alleged transactions could undermine Binance’s 2023 settlement with US authorities. Under that agreement, Binance paid a $4.3 billion fine, founder Changpeng Zhao stepped down as CEO, and the exchange agreed to operate under the supervision of a Department of Justice-appointed compliance monitor. Regulators have been given until March 13, 2026, to provide updates on their findings. Any violation of the settlement terms could expose Binance to significant legal and financial consequences.

Binance has strongly denied the allegations, emphasizing improvements in its compliance program. The exchange reported a 96.8% reduction in sanctions-related exposure between January 2024 and July 2025. According to Binance, it proactively addressed the accounts in question, offboarded users tied to suspicious activity, and cooperated with law enforcement. The company maintains that its compliance systems are effective and that claims suggesting otherwise misrepresent how digital asset platforms manage risk.