Binance Rejects Claims It Ignored Compliance Violations As "Demonstrably False"

In an open letter published Friday in response to U.S. Senator Richard Blumenthal's (D-CT) inquiry over alleged money laundering and sanctions behavior, crypto exchange Binance accused the Senator of relying on false and defamatory reports.

What's the Scoop?

• Senate Inquiry: On February 24, Senator Blumenthal opened an inquiry into Binance following reports from the Wall Street Journal, the New York Times, and Fortune suggesting that the crypto exchange was complicit in "laundering money and enabling trade with Iranian government entities," including Yemeni Houthis, Iran’s Islamic Revolutionary Guards Corps, and Russian shadow oil tankers. Blumenthal also accused Binance of skirting accountability through its financial partnership with President Trump's World Liberty Financial.
• Demonstrably False: According to Binance's open letter, "the recent reporting on which [Blumenthal's] inquiry relies... is demonstrably false, unsupported by credible evidence, and defamatory in several material respects." The exchange said entities tied to alleged illegal activity had only “indirect exposure to wallet addresses with potential ties to Iran," adding that the clients in question were removed after law enforcement inquiries.
• Previous Settlement: Binance and former CEO Changpeng "CZ" Zhao pleaded guilty to federal money laundering and sanctions evasions charges in November 2023. The defendants paid $4.3B in penalties, CZ went to prison (before being pardoned by President Trump), and Binance agreed to remedial compliance monitoring stipulations (which were withdrawn last year).