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Binance has pushed back against allegations raised in a US Senate inquiry over possible violations of Iran sanctions. In a formal response to Senator Richard Blumenthal, the exchange rejected claims that weak compliance systems allowed illicit financial activity on its platform. Binance said reports cited in the inquiry included false and unsupported allegations about its sanction controls and anti-money-laundering procedures.
The company said no Binance account carried out direct transactions with Iran-based entities. It also said its risk controls had tightened over time as exposure to suspicious wallets fell sharply. The response came as scrutiny of major crypto exchanges in Washington continued to build.
Binance also said risk can never fall to zero on public blockchains. Still, it said its systems are built to detect threats early and reduce misuse. The dispute now centers on whether those measures satisfy lawmakers who want tougher oversight.
Binance said its compliance program relies on more than 1,500 specialists around the world. According to the company, those teams focus on screening sanctions, checking money laundering, and monitoring financial crimes.
The exchange said it uses advanced monitoring tools to identify suspicious activity across blockchain networks. The tools help investigators trace risky wallet behavior and flag misconduct before it spreads further.
Binance also pointed to its cooperation with law enforcement. The company said it processed more than 71,000 requests from investigators in 2025 alone. It added that its teams helped authorities seize more than $750 million in illicit assets, including nearly $580 million tied to US agencies.
The exchange also said its exposure to wallets linked to illegal activity had dropped by almost 97% since early 2024. That figure, Binance said, included a 97.3% decline in exposure to major Iranian crypto trading platforms.
Binance addressed two entities named in the Senate inquiry: Hexa Whale and Blessed Trust. The company said both were investigated after law enforcement requests triggered internal reviews.
Following those reviews, Binance removed the related accounts from its platform. The company said those cases showed that its compliance teams respond when authorities flag potential risks.
Binance also rejected claims about whistleblowers. It said employee departures mentioned in reports reflected normal staff turnover and did not result from retaliation tied to compliance concerns.
At the same time, the exchange said it supports cooperation between staff, investigators, and internal compliance teams. That point formed part of its broader argument that the platform does not ignore warning signs. Yet one question now hangs over the matter: will that defense ease concerns in Washington?
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The clash arrives during a period of continued regulatory pressure on major digital asset platforms. The US lawmakers and regulators have kept a close watch on how exchanges handle sanctions risk and financial crime.
Binance said it cannot remove every risk from an open blockchain environment. Even so, it said that strict monitoring, identity verification, and ongoing reviews help lower that exposure and improve control over suspicious activity.
The company also linked its current position to earlier reforms. Binance previously reached a settlement with US authorities in 2023, agreed to pay billions in penalties, and moved to strengthen its compliance framework.
That earlier settlement remains part of the backdrop to the current Senate inquiry. For now, Binance’s response makes its position clear: it rejects the allegations and says its controls, enforcement cooperation, and account reviews tell a different story.
Binance rejected the US Senate’s allegations and said its compliance controls remain strong. The exchange pointed to its global compliance team, law enforcement support, and declining exposure to risky wallets. The dispute shows that regulatory pressure on major crypto platforms remains intense and far from settled.
