Binance, from Iran Transaction Controversy to Whistleblower Dismissal... Biggest Crisis Under US Senate Pressure

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Binance is facing renewed legal risks as it undergoes intense additional scrutiny from the U.S. Congress over allegations of illegal financial transactions with Iran and sanctions violations.

Crypto news outlet Bitcoinist reported on April 18 (local time) that Democratic Senator Richard Blumenthal has launched an all-out pressure campaign, raising new questions about Binance's handling of Iran-related transactions. Senator Blumenthal sent official letters to the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury on April 17. These letters focus on ascertaining the current status and specific achievements of the two monitors appointed to oversee Binance's compliance with regulations.

This congressional investigation was triggered by revelations from Binance whistleblowers. Multiple media outlets reported that Binance internal investigators had reported to management that over $1 billion had flowed into Iran-linked wallets, but were subsequently fired. Senator Blumenthal expressed deep concern, stating, "Suspicions are growing that Binance's anti-money laundering measures are dangerously lax." Congress has demanded that Binance submit detailed records, including account opening dates and fund movement paths, by April 14.

Binance vehemently denies and refutes all these allegations. Binance claims that its internal review found no evidence of sanctions law violations and that the fired investigators resigned for reasons unrelated to the Iran-related investigation. The company also emphasized that it has significantly strengthened its regulatory compliance processes since the resignation of former CEO Changpeng Zhao (CZ). Binance announced, based on its own statistics, that the proportion of exposure to sanctioned transactions plummeted by approximately 96.8%, from 0.284% in January 2024 to 0.009% in July 2025.

Statistically, the volume of transactions with major Iranian exchanges is clearly on a downward trend. According to Binance's report, transaction volume linked to Iran's four major exchanges dropped from $4.19 million in January 2024 to $1.10 million in January 2026. However, the U.S. Congress maintains that such voluntary reports are insufficient. Senator Blumenthal is persistently inquiring about how the monitors are evaluating Binance's actual improvement efforts and whether regulatory authorities have identified specific instances of violations.

Despite the rekindling of legal risks, Binance's native coin, BNB, maintained a robust performance. At the time of reporting, BNB was trading around $638, up 4% from the previous day and 6% over the week, seemingly dispelling market concerns. Investors are keenly awaiting the responses from the Department of Justice and the Department of the Treasury regarding the additional congressional letters. Binance reiterated its commitment to transparent operations to restore trust with regulatory authorities.

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