A group of nine U.S. senators has urged federal agencies to investigate Binance, a major global cryptocurrency exchange, amid allegations of potential funding linked to terrorist groups. The request was made following reports suggesting that Binance may have violated sanctions and failed to adequately prevent illicit financial activities.
The senators, including prominent figures involved in the Digital Asset Market Clarity Act negotiations, sent a letter on Friday to the Treasury and Justice departments. They expressed concerns over the exchange’s compliance with financial regulations, particularly after claims surfaced that Binance had dismissed compliance staff who were involved in identifying suspicious transactions.
This latest action follows an inquiry initiated earlier in the week by Senator Richard Blumenthal, a Democrat from Connecticut, who is a senior member of the Senate Homeland Security Committee. Blumenthal had previously reached out to Binance for clarification on these allegations. However, as the Democrats do not hold the majority in the Senate, they lack the authority to conduct formal committee investigations.
Richard Teng, co-CEO of Binance, has publicly refuted some of the media reports, labeling them as “inaccurate” and “defamatory.” A spokesperson for the company did not respond immediately to inquiries regarding the senators’ letter directed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi.
The senators’ letter raised serious concerns about the potential risks posed by inadequate controls against illicit finance at Binance, stating, “These allegations raise grave concerns that poor illicit finance controls at Binance remain a significant threat to national security.” They also sought information regarding the company’s adherence to the terms of its 2023 settlement.
The ongoing discussions in Congress about regulating the cryptocurrency market include measures aimed at preventing illicit finance. Senator Mark Warner has been particularly active in shaping the legislative framework addressing these issues.
Additionally, the letter referenced connections between Binance and World Liberty Financial, a cryptocurrency venture supported by former President Donald Trump. The senators acknowledged Trump’s pardon of Binance founder Changpeng “CZ” Zhao, who had previously pleaded guilty to violations related to anti-money laundering and customer verification laws.
Nine U.S. senators have called for a federal investigation into Binance, citing concerns over potential ties to terrorist financing and compliance failures. This request follows earlier inquiries into the exchange's operations and its connections to prominent political figures.