Senator Probes Binance Over Alleged Iran Sanctions Violations

Inquiry launched after reports of fired investigators finding over $1 billion in suspicious Iran-linked transactions

Published on Feb. 26, 2026

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Senator Richard Blumenthal (D-Conn.) has opened an inquiry into cryptocurrency exchange Binance following reports that the company had fired investigators who uncovered evidence of over $1 billion in transactions with entities tied to Iran, potentially violating U.S. sanctions. The inquiry comes after recent media reports detailed the allegations against Binance, including claims of deep ties between the exchange and a Hong Kong-based entity called Blessed Trust that was allegedly involved in the suspicious Iran-linked transactions.

Why it matters

The allegations against Binance, if true, would represent a major sanctions violation and raise serious concerns about the crypto exchange's compliance practices. The inquiry by Senator Blumenthal could lead to further scrutiny and potential enforcement actions against Binance, underscoring the increasing regulatory pressure facing the cryptocurrency industry.

The details

According to reports, top investigators at Binance found evidence of over $1 billion in transactions flowing through the exchange to entities linked to Iran's Islamic Revolutionary Guard Corps, potentially violating U.S. sanctions. Binance has pushed back on the allegations, claiming it did not violate sanctions and that it offboarded accounts tied to the suspicious transactions. However, the reports indicate that Binance fired the employees who uncovered the evidence. The reports also revealed details about a Hong Kong-based entity called Blessed Trust that allegedly had deep ties to Binance, including records showing Binance employees logging into Blessed Trust's trading account on the exchange.

  • On February 26, 2026, Senator Richard Blumenthal (D-Conn.) opened an inquiry into Binance following the reports about the fired investigators and the alleged Iran-linked transactions.
  • Earlier in February 2026, Fortune and other media outlets first reported on the allegations against Binance regarding the fired investigators and the over $1 billion in suspicious transactions.
  • On February 27, 2026, Binance CEO Richard Teng posted a legal letter addressing the Wall Street Journal's reporting on the allegations.

The players

Senator Richard Blumenthal

A Democratic senator from Connecticut who has launched an inquiry into Binance over the allegations of sanctions violations and the firing of investigators.

Binance

A leading global cryptocurrency exchange that has been accused of allowing over $1 billion in transactions with entities linked to Iran, potentially violating U.S. sanctions.

Blessed Trust

A Hong Kong-based entity that reportedly had deep ties to Binance, including records showing Binance employees logging into Blessed Trust's trading account on the exchange.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The Senate inquiry led by Senator Blumenthal will likely continue to investigate the allegations against Binance, potentially leading to further scrutiny and potential enforcement actions against the cryptocurrency exchange.

The takeaway

The allegations against Binance underscore the growing regulatory scrutiny facing the cryptocurrency industry, particularly around compliance with sanctions and anti-money laundering regulations. The outcome of the Senate inquiry could have significant implications for Binance and the broader crypto sector.