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US Senator asks for Binance monitor update amid scrutiny of Iran sanctions
TL;DR
Connecticut Senator Richard Blumenthal has requested updates from US authorities on Binance's compliance with anti-money laundering laws amid concerns over its monitoring program. This follows a 2023 settlement where Binance agreed to pay $4.3 billion and adhere to strict oversight.
Key points
- Senator Blumenthal questioned US authorities about Binance's compliance
- Binance settled for $4.3 billion in 2023 and is under monitoring
- Concerns over lax anti-money laundering practices at Binance
Mentioned in this story
Richard BlumenthalBinanceChangpeng ZhaoUS TreasuryFinancial Crimes Enforcement NetworkJustice Department
Connecticut Senator Richard Blumenthal questioned US authorities responsible for overseeing Binance about whether the company is complying with anti-money laundering laws and sanctions under its 2023 court-imposed monitoring program.
According to a report published by Fortune on Friday, Blumenthal sent letters to the Justice Department and the US Treasury’s Financial Crimes Enforcement Network (FinCEN), asking for details on Binance’s compliance.
Binance and its former CEO Changpeng “CZ” Zhao reached a deal in 2023, in which the exchange would pay $4.3 billion to settle civil regulatory enforcement actions, and CZ would plead guilty to one felony charge.
The deal also required that Binance be subject to monitoring and reporting requirements by US officials.
Blumenthal’s letter said he was concerned about “mounting allegations of dangerously lax anti-money laundering prevention by Binance.” Fortune reported that DOJ and FinCEN officials responsible for overseeing the exchange as part of the deal would not comment.
Related: Crypto billionaire to prison: CZ’s autobiography revisits turbulent Binance era
The letter followed reports that Binance was under scrutiny regarding US sanctions imposed on Iran.
The crypto exchange reportedly fired individuals responsible for telling Binance executives that $1 billion flowed through the platform to entities tied to Iran. A spokesperson for the exchange has denied the claims.
In February, a group of senators urged Treasury Secretary Scott Bessent and former Attorney General Pamela Bondi, who was fired by US President Donald Trump in April, to complete a “prompt, comprehensive review” of Binance’s compliance controls.
Q&A
What did Senator Blumenthal ask US authorities regarding Binance?
Senator Blumenthal asked for updates on Binance's compliance with anti-money laundering laws and sanctions under its court-imposed monitoring program.
What was the outcome of the 2023 settlement involving Binance?
In the 2023 settlement, Binance agreed to pay $4.3 billion and its former CEO Changpeng Zhao pleaded guilty to one felony charge.
Why is there scrutiny over Binance's anti-money laundering practices?
There are mounting allegations of dangerously lax anti-money laundering prevention by Binance, prompting Senator Blumenthal's concerns.
