Binance Denies Allegations of Sanctions Evasion in Senate Letter

Binance refutes claims of sanctions violations in a letter to the US Senate, highlighting $752 million in seized illicit funds and 97% lower Iran exposure.

In a letter to the Senate Subcommittee on Investigations, Binance asserted that the media reports forming the basis of the inquiry contain “false, unsupported, and defamatory claims” regarding its internal controls and sanctions compliance systems.

The company maintains that it enforces rigorous Know Your Customer (KYC) procedures and does not permit users residing in Iran to access the platform.

The Senate investigation focuses on two entities—Hexa Whale and Blessed Trust—which media reports suggested had indirect links to crypto wallets potentially associated with Iranian subjects.

According to Binance, the platform launched its own investigation following a tip from law enforcement and subsequently removed both organizations from its system.

Expanded Compliance Infrastructure

The company stated that it has invested hundreds of millions of dollars in compliance systems over recent years, including:

• More than 1,500 employees dedicated to financial crimes and sanctions control
• Over 25 different tools for monitoring transactions and customers
• Collaboration with international law enforcement agencies

Binance claims that in 2025, it processed over 71,000 requests from law enforcement authorities.

Furthermore, the exchange states it has assisted authorities in seizing more than $752 million in illicit funds over the last three years, including approximately $579 million for US government agencies.

Reducing Exposure to Illicit Transactions

According to data cited by Binance, the share of transactions linked to suspicious crypto wallets has dropped significantly.

Between January 2024 and July 2025:

• Exposure to illicit addresses decreased from 0.284% to 0.009% of trading volume
• Exposure to four major Iranian crypto exchanges fell by 97.3%

The company noted that it is impossible to completely eliminate risk on public blockchain networks, as any user can send funds to an exchange address without prior approval.

The Hexa Whale and Blessed Trust Investigations

Binance states that the initial investigation began in April 2025 when law enforcement requested information regarding transactions between the exchange and external wallets potentially linked to terrorism financing.

Following an internal investigation:

• Hexa Whale was removed from the platform in August 2025
• Blessed Trust was removed in January 2026

The company asserts that no Binance account has engaged in direct transactions with Iranian entities.

Dispute Over VPNs and Alleged Iranian Accounts

The letter also addressed media claims that approximately 2,000 Binance accounts were linked to Iranian organizations.

According to the company, this claim is false and likely stems from attempts by users to bypass geographic restrictions using VPN services.

Binance maintains that identity verification is mandatory for all clients, and using a VPN to circumvent restrictions constitutes a violation of the platform’s rules.

Implications for the Crypto Industry

This case arrives during a period of intensified regulatory pressure on the crypto sector in the United States.

The conflict between Binance and US lawmakers highlights a broader debate on how crypto exchanges should:

• Comply with international sanctions.
• Prevent money laundering.
• Work with global regulators.

Binance stated it will continue to improve its compliance system and cooperate with law enforcement as it seeks to maintain its role as a core infrastructure provider in the global crypto market.