Binance has revealed a proper rebuttal to US Senator Richard Blumenthal, pushing again in opposition to what the crypto trade describes as false and defamatory claims in current media protection that prompted a congressional inquiry into its sanctions compliance program.
The letter, issued on March 6, addressed to the rating member of the Senate Everlasting Subcommittee on Investigations and copied to Chairman Ron Johnson, responds to Blumenthal’s February 24 correspondence.
That inquiry drew closely on studies revealed by the New York Instances, Fortune, and the Wall Avenue Journal earlier this 12 months, which raised questions in regards to the trade’s publicity to Iranian entities and its inside dealing with of compliance issues.
Binance’s authorized representatives assert that the corporate maintains strict Know Your Buyer protocols and explicitly prohibits customers residing or positioned in Iran from accessing its platform.
The trade acknowledged that two entities highlighted in Senator Blumenthal’s letter, together with Hexa Whale and Blessed Belief, had oblique publicity to pockets addresses with potential ties to Iran however emphasised that neither transacted straight with an Iran-based social gathering.
“Binance has a rigorous compliance program that’s persistently rising stronger,” the corporate said in its response, including that when credible threat info emerges, it investigates, mitigates publicity, removes accounts, and studies findings to applicable authorities.
The trade detailed its investigative timeline for each flagged entities. Legislation enforcement inquiries in April 2025 triggered a complete inside overview that led to Hexa Whale’s removing from the platform in August 2025.
A separate investigation prompted by summer season 2025 regulation enforcement requests resulted in Blessed Belief’s offboarding in January 2026. Binance confused that its investigators continued analyzing potential dangers even after fulfilling preliminary info requests from authorities.
Binance disclosed vital funding in its compliance infrastructure, claiming expenditures within the lots of of thousands and thousands of {dollars} in recent times.
The trade now employs greater than 1,500 compliance professionals globally, together with specialists in sanctions enforcement, counterterrorism financing, and monetary crime investigations. The corporate has deployed over 25 third-party instruments for buyer due diligence and transaction monitoring.
Operational metrics offered within the letter point out that Binance processed greater than 71,000 regulation enforcement requests throughout 2025.
Over the previous three years, the trade has helped authorities businesses seize greater than $752 million in property, with almost $579 million recovered for US authorities.
Analytics knowledge reveals that its publicity to wallets allegedly concerned in illicit exercise fell from almost 0.3% of whole trade quantity in January 2024 to simply 0.009% by July 2025, a decline of roughly 97%.
Moreover, publicity to the 4 main Iranian crypto exchanges dropped 97% over two years, from over $4 million to $110,000.
The rebuttal straight contested a Wall Avenue Journal declare that Binance compliance groups had recognized 2,000 accounts related to Iranian entities on its platform.
Binance known as this assertion false and prompt the determine might relate to ongoing efforts to strengthen controls round digital personal community utilization fairly than any willpower about Iranian account holders.
The trade famous that id verification stays obligatory for all prospects and that VPN use to bypass eligibility necessities violates its phrases of service.
Personnel issues additionally drew consideration within the response.
The corporate has acknowledged that some compliance workers and contractors have lately left, but it surely denies that any firings are the results of compliance issues escalating.
The corporate disclosed that one worker was terminated following an inside investigation that discovered unauthorized disclosure of inside consumer info, characterizing this as a violation of consumer privateness insurance policies fairly than retaliation.
Binance’s rebuttal arrives at a time of rising regulatory strain on massive crypto platforms. The trade’s choice to publish its response to Congress alerts an effort to display transparency because it addresses compliance issues.
