Senate Dems Press DOJ Treasury to Probe Binance Iran Trump

Eleven Senate Democrats are pressing the DOJ and Treasury to probe Binance over allegations that the crypto exchange funneled $1.7 billion in digital assets to Iranian entities while deepening business ties with President Donald Trump's family. In a letter sent Friday to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, members of the Senate Banking Committee demanded a "prompt, comprehensive review" of the exchange's sanctions compliance controls, warning that weak safeguards at the world's largest digital asset platform pose a direct threat to national security.

What Did Senate Democrats Allege Against Binance?

The senators allege that Binance compliance staff discovered last year that approximately $1.7 billion in cryptocurrency had been channeled through the platform to Iranian-linked groups, including the Iran-backed Houthis and the Islamic Revolutionary Guard Corps. A single Binance vendor reportedly transferred $1.2 billion in funds tied to Iran-connected actors, according to the letter.

The lawmakers also warned that Iranian users gained access to more than 1,500 Binance accounts and that Russian actors may have exploited the platform to circumvent sanctions. The letter was led by Senator Mark Warner and co-signed by Ranking Member Elizabeth Warren along with nine other committee members including Senators Jack Reed, Catherine Cortez Masto, and Raphael Warnock.

The Democrats raised concerns that Binance employees who flagged the suspicious transactions were subsequently dismissed and that the company has grown less responsive to law enforcement. Such behavior, they argued, would conflict with the firm's obligations under its 2023 federal plea agreement.

Binance's 2023 Plea Deal Under Scrutiny

Binance pleaded guilty in 2023 to federal charges that included sanctions law violations and anti-money laundering failures. The exchange agreed to pay more than $4 billion in penalties and committed to sweeping compliance reforms under U.S. government oversight, including enhanced know-your-customer procedures and strengthened sanctions screening.

Under its settlement with the Treasury Department's Office of Foreign Assets Control, Binance pledged to build systems capable of detecting and blocking prohibited transactions. The senators contend that allowing $1.7 billion to reach sanctioned Iranian entities would be fundamentally inconsistent with that commitment and raises serious questions about whether the reforms have been meaningfully implemented.

Trump Family Crypto Ties Raise Conflict Concerns

The letter highlighted Binance's expanding business relationship with President Trump and his family's cryptocurrency ventures. Lawmakers pointed to the exchange's promotion of USD1, a stablecoin issued by World Liberty Financial, a Trump family-backed project. According to the senators, Binance offered interest incentives to users holding USD1, provided technology assistance for the token, and accepted a $2 billion investment connected to it.

The Democrats also cited Trump's pardon last fall of Binance founder Changpeng Zhao, who had pleaded guilty to failing to maintain an effective anti-money laundering program and served a four-month prison sentence. These financial and political connections, the lawmakers argued, underscore the need for a "thorough, impartial" investigation into the exchange's operations.

Broader National Security Risks

The senators warned that Binance's recent activities extend beyond Iran-related concerns. The exchange recently launched crypto-linked payment cards in parts of the former Soviet Union, and the lawmakers cautioned that similar products have been used to bypass restrictions on the Russian financial system.

Binance has also partnered with Kyrgyzstan to develop a stablecoin and digital currency initiative, raising questions about exposure to sanctions evasion risks. The senators wrote that these developments represent a "significant threat to national security" and could enable terrorist organizations or sanctions evaders to access the global financial system.

What Happens Next for Binance?

The immediate next step is a deadline: the senators have asked Attorney General Bondi and Treasury Secretary Bessent to respond by March 13 with details on whether federal authorities intend to act. If the DOJ or Treasury opens a formal review, it could put Binance's 2023 plea agreement directly at risk and potentially trigger additional enforcement actions.

A Binance spokesperson pushed back on the claims, stating that the company detected and reported the suspicious activity and that allegations of retaliation against compliance employees are false. Binance has said it remains fully committed to its regulatory obligations under the 2023 settlement agreements. Whether that assurance satisfies federal investigators remains to be seen.