Sen. Richard Blumenthal (D-NY) has launched an investigation into Binance (CRYPTO: BNB) after $1.7 billion flowed to Iranian terrorists including the Revolutionary Guard Corps, demanding records on why compliance staff who discovered the transfers were fired.
The $1.7 Billion Flow
Blumenthal wrote to Binance CEO Richard Teng citing Wall Street Journal, New York Times, and Fortune reports.
Binance compliance staff found two partners—Hexa Whale and Blessed Trust—acted as intermediaries for laundering money to Iranian government entities.
Internal investigators found cryptocurrency transfers to wallets associated with Iran’s Islamic Revolutionary Guard Corps and payments to crew members of Russia’s sanctions-evading shadow fleet.
Authorities warned Binance that the Hexa Whale was financing Yemen’s Houthi militants.
The investigators who raised concerns were subsequently suspended or fired. Blumenthal called this “the appearance of retaliation by Binance executives.” The network remained active after the firings.
The Trump Connection
Blumenthal argued Binance sought to evade accountability through lobbying and a financial partnership with World Liberty Financial (CRYPTO: WLFI), the Trump family’s crypto firm.
Binance accounts currently hold 85% of WLFI’s USD1 stablecoin.
The influence campaign worked. In May 2025, the SEC dismissed a lawsuit against Binance for lying to regulators and mishandling funds.
In October, Trump pardoned founder Changpeng Zhao, who had served four months in prison for failing to maintain an effective anti-money-laundering program.
Binance pleaded guilty in 2023 to violating sanctions and anti-money-laundering laws, paying a record $4.3 billion fine and pledging reform under U.S. oversight.
The company admitted to turning itself into a money-laundering hub for criminals, terrorists, and Iranian sanction evaders.
The Compliance Breakdown
Documents show Binance’s financial-crime investigations team connected accounts registered to Chinese clients to digital wallets used by Iran to finance its proxies.
Over $1 billion came from Blessed Trust’s account.
Investigators shared findings with CEO Richard Teng and Chief Compliance Officer Noah Perlman in October. The next month, Binance suspended the investigators and later fired them.
A Binance spokeswoman said investigators weren’t “suspended or terminated for raising compliance concerns” but left “based on individual circumstances.”
Additionally, investigators uncovered 2,000 accounts accessed from Iran using software that masks users’ locations. Teng rejected their recommendation to request additional user information, according to documents.
The Information Demands
Blumenthal demanded Binance provide by March 6:
- All records related to Hexa Whale and Blessed Trust usage
- Records on Binance use by individuals in Iran or engaging with Iranian entities
- Records on Russian shadow fleet involvement
- Records on Tether (CRYPTO: USDT) and USD1 use for sanction evasion
- Records on suspension and dismissal of compliance staff
Image: Shutterstock
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