Eleven Senate Democrats demand DOJ, Treasury probe Binance over $1.7B Iran flows

Eleven Senate Democrats sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent pressing the Justice Department and Treasury to conduct a “prompt, comprehensive review” of Binance’s sanctions compliance after media reports alleged roughly $1.7 billion in digital assets had been routed through the exchange to Iranian entities, including groups linked to terrorism.

The letter, reported sent on February 27, 2026 with a requested response by March 13, 2026, asks federal authorities to undertake a “timely, thorough inquiry” into Binance’s sanctions compliance functions, to determine whether the exchange honored terms of its 2023 settlement and whether compliance personnel who raised concerns faced retaliation. The 2023 settlement followed a guilty plea described by senators as linked to money laundering and violations of U.S. sanctions laws.

The senators cited media reporting that in one instance a Binance vendor allegedly moved $1.2 billion in funds tied to Iran-linked actors and that Iranian users had accessed more than 1,500 Binance accounts. The letter also flagged allegations that Iran-backed Houthis, the Islamic Revolutionary Guard Corps and other Iran-linked actors benefitted from flows, and cited reporting that Russian actors may have used the platform to evade sanctions. Those figures and assertions are drawn from reporting and compliance personnel cited in the senators’ correspondence.

Senators named by multiple sources as signatories include Mark Warner, Elizabeth Warren, Chris Van Hollen, Jack Reed, Catherine Cortez Masto, Tina Smith, Raphael Warnock, Andy Kim, Ruben Gallego, Lisa Blunt Rochester and Angela Alsobrooks. News outlets differ on which senator led the effort: some accounts say Van Hollen publicly led his Democratic colleagues on the Senate Banking, Housing and Urban Affairs Committee, while others described Mark Warner or Elizabeth Warren as lead figures. CoinDesk used a narrower count in one headline, referring to nine lawmakers, a discrepancy that senators’ offices and press reports have not reconciled in full.

The senators framed the allegations as a national security risk. “These allegations raise grave concerns that poor illicit finance controls at Binance remain a significant threat to national security,” the letter said, and added, “Our illicit finance controls are dangerously compromised if enormous sums can flow through Binance to terrorist groups or sanctions evaders.”

The request for an impartial, external review also referenced concerns about the company’s recent political ties. Senator Ruben Gallego’s office and other coverage noted worries about Binance’s “deepened ties to President Donald Trump and his family,” and some reporting cited President Trump’s pardon of Binance founder Changpeng Zhao and connections to World Liberty Financial as part of why the probe must be demonstrably impartial.

Binance has disputed parts of the reporting cited by the senators. Richard Teng, Binance co‑chief executive, said some earlier media reports were “inaccurate” and “defamatory.” A Binance spokesperson did not immediately respond to requests for comment on the senators’ new letter. Separately, Senator Richard Blumenthal announced an inquiry earlier in the week and wrote directly to Binance seeking information.

The senators asked DOJ and Treasury to review the company’s observance of the 2023 settlement, investigate possible retaliation against compliance staff, and demonstrate that any probe would be impartial. Federal agencies have not announced whether they will open an inquiry in response to the letter. The senators’ correspondence and the underlying media reports are the principal bases for the allegations; federal review would be needed to substantiate or refute the claims.