Binance, through its lawyers, told a U.S. Senate investigation that it found no evidence that its platform accounts transacted directly with Iranian entities, refuting allegations that $1.7 billion in cryptocurrencies flowed through the exchange to Iran-linked groups.
In a March 6 letter responding to requests from Sen. Richard Blumenthal’s (D-CT) Permanent Subcommittee on Investigations, the largest cryptocurrency exchange said an internal review found only indirect exposure to wallets that may have ties to Iran and that accounts linked to the activity had been removed.
Binance also attacked the media coverage that prompted the investigation, calling reports from outlets including the New York Times, Wall Street Journal and Fortune “patently false” and “defamatory in several important respects.”
The response comes after Blumenthal opened an investigation into whether the exchange allowed funds to be transferred to Iran-linked organizations, including Yemen’s Houthi militants. The investigation follows media reports that Binance’s internal investigators had identified transactions linked to Iranian entities.
Binance said its review began after law enforcement contacted the company last April to request information about transactions between Binance wallets and several external addresses that authorities said could be linked to terrorist financing.
According to the letter, the exchange provided user records and transaction information to investigators and continued to review the activity internally.
Lawyers for the exchange said Binance identified two entities, Hexa Whale and Blessed Trust, whose accounts interacted with the reported wallets. Binance said it removed Hexa Whale from its platform the following August and removed Blessed Trust in January after completing its investigations.
Binance also disputed reports that compliance investigators were fired after raising concerns, saying most departures were voluntary and that one employee was fired for violating the company’s policy on disclosing internal user information.
“Where credible information about risks exists, Binance investigates, mitigates, removes accounts and reports to the appropriate authorities,” the letter said. “Binance has a rigorous compliance program that continues to strengthen.”
