Binance, through its lawyers, told the U.S. Senate inquiry that it found no evidence that accounts on its platform traded directly with Iranian entities, and refuted claims that $1.7 billion in virtual currency flowed through the exchange to Iranian-linked groups.
In a March 6 letter in response to inquiries from Sen. Richard Blumenthal’s (D-Conn.) Permanent Subcommittee on Investigations, the largest cryptocurrency exchange said that an internal investigation revealed only indirect exposure to wallets that may have had ties to Iran, and that accounts associated with this activity have been removed.
Binance also attacked the media reports that sparked the investigation, calling the reports by news outlets such as the New York Times, Wall Street Journal, and Fortune “patently false” and “defamatory in several important respects.”
The response came after Blumenthal launched an investigation into whether the exchange allowed funds to be transferred to Iranian-linked groups, including Yemen’s Houthi militants. The investigation followed media reports that Binance’s internal investigators had identified transactions related to Iranian companies.
Binance said the review began after it was contacted in April last year by law enforcement agencies seeking information about transactions between Binance wallets and multiple external addresses that authorities said may be related to terrorist financing.
According to the letter, the exchange provided user records and transaction information to law enforcement authorities and continued to investigate its internal activities.
Lawyers for the exchange said Binance identified two entities, Hexa Whale and Blessed Trust, whose accounts interacted with the flagged wallets. Binance said it removed Hexa Whale from its platform the following August after completing its investigation, and offboarded Blessed Trust in January.
Binance also disputed reports that compliance investigators were fired after raising concerns, saying most of the resignations were voluntary and that one employee was fired for violating company policy on disclosing internal user information.
“If there is any credible risk information, Binance will investigate, mitigate, offboard the account, and report to the appropriate authorities,” the letter said. “Binance has a rigorous compliance program that is consistently strengthened.”
