Binance vs. Senate: A $2B Iranian Laundry Soap Opera!

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Well, shut my mouth and call me a whale – Binance has finally decided to wag its finger at the US Senate, declaring those pesky allegations of Iranian money laundering as “false and defamatory.” Co-CEO Richard Teng, with a straight face, claims they’re as innocent as a lamb in a wolf’s den. Bless his heart.

This little tiff started when Senator Richard Blumenthal, a man with a nose for trouble, demanded Binance cough up records of nearly $2 billion in transfers to sanctioned entities. Oh, and let’s not forget the poor souls who got the boot for flagging this shady business. What a coincidence, ain’t it?

Binance Brags About a 97% Drop in Shady Deals

Teng, taking to social media like a duck to water, fired back at Blumenthal’s February 24 letter. He claims Binance didn’t knowingly play patty-cake with Iranian sanctions evaders. They even published a blog post longer than a Sunday sermon to prove their innocence. Hallelujah!

In this masterpiece of self-defense, Binance boasts a 97% drop in exposure to illicit wallets between early 2024 and mid-2025. They also claim to have helped law enforcement seize over $752 million in dirty money. That’s enough to make a saint blush.

We’ve voluntarily responded to Senator Blumenthal’s inquiry, which is about as accurate as a three-legged horse in a race. While we take such matters seriously, it’s important to toot our own horn about our industry-leading compliance. We’ve worked harder than a mule in a coal mine to build and protect our…

– Richard Teng (@_RichardTeng) March 6, 2026

Binance also proudly announced they’ve shown the door to Hexa Whale and Blessed Trust, two partners accused of being middlemen for Iranian money laundering. All thanks to their “proactive internal investigations.” How convenient.

And let’s not forget the employees who got the axe for raising compliance concerns. Binance swears up and down they were fired for blabbing, not for being whistleblowers. Sure, and I’m the Queen of England.

Oh, and they’re threatening to sue the Wall Street Journal for defamation. Because nothing says “we’re innocent” like a good old-fashioned legal threat.

Senator Says Binance Was Cozier Than a Cat in a Sunbeam with Iranian Sanctions Evaders

Blumenthal, not one to mince words, claims Binance wasn’t just a bystander – they were the bartender serving drinks at this sanctions-evading party. He says they ignored warning signs, let illicit accounts run wild, and even gave a helping hand to money launderers. What a charmer.

Binance appears to have turned a blind eye, knowingly let the bad guys play in their sandbox, and even held their hand while they washed dirty money. What a stand-up operation.

He also points out that Binance’s own compliance team flagged over 2,000 Iranian-linked accounts, despite the exchange’s ban on such users. Oopsie.

Blumenthal frames this as just another chapter in Binance’s long history of mischief. In 2023, they pleaded guilty to federal charges for sending nearly a billion dollars to Iranian entities and terrorist organizations. Founder Changpeng Zhao got a cozy four-month vacation in prison. Lucky him.

Instead of cleaning up their act, Blumenthal says, Binance sought political cover by buddying up with World Liberty Financial, a crypto venture tied to the Trump family. About 85% of its stablecoins are parked in Binance accounts. How quaint.

The SEC dropped its lawsuit against Binance last May, and Zhao got a presidential pardon just months later. Justice is blind, alright.

Congressional Scrutiny Hits Binance Like a Ton of Bricks

Friday was the deadline for Binance to hand over the goods to the subcommittee. They responded with a blog post but stopped short of giving Blumenthal what he wanted. Shocking, I know.

This showdown comes at a tricky time for the crypto world. A Chainalysis report reveals illicit addresses raked in at least $154 billion in 2025, a 162% jump from the previous year. Most of it went to sanctioned entities, thanks to a 694% spike. It’s a new era of crypto crime, folks.

Stablecoins, the darling of the crypto world, accounted for 84% of illicit transactions, up from just 15% in 2020. And guess what? Tether is front and center in the Binance allegations. What a surprise.

For Binance, this Senate inquiry is more than just a headache. It could shape how lawmakers regulate crypto going forward. So, grab your popcorn – this soap opera is just getting started.

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2026-03-07 01:46