The Justice Department and the Treasury Department’s Financial Crimes Enforcement Network are under pressure from lawmakers over their oversight of Binance amid allegations that the company facilitated illegal transaction channels linked to Iranian-related entities.
According to Fortune, Sen. Richard Blumenthal sent a letter to the Department of Justice and FinCEN demanding answers about the two monitors tasked with overseeing Binance’s compliance activities.
This monitoring was introduced after Binance’s 2023 settlement with US authorities. The settlement included a $4.3 billion fine and required stronger anti-money laundering measures.
The letter comes in the wake of allegations that nearly $2 billion in virtual currency flowed through Binance to Iranian-related entities during the period the watchdog was supposed to be monitoring.
Additionally, at least five of these compliance investigators were reportedly fired at the end of 2025. However, Binance said the firings had nothing to do with the findings of the Iran investigation and that the exchange has strict compliance activities.
Blumenthal is also investigating Binance regarding these claims. In a February letter to the exchange’s CEO Richard Teng, he asked for transaction records, details of assets such as Tether and USD1, and documents regarding staff terminations.
Last month, the Justice Department opened an investigation into whether Iran used Binance to evade U.S. sanctions and finance militant groups, The Wall Street Journal reported. Investigators are interviewing people involved in the transfers and examining evidence related to the funds allegedly routed through the exchange, according to the report.
The scope of the investigation remains unclear, including whether Binance itself will face enforcement action or whether it will be limited to its users.
In response, the exchange sued WSJ for publishing false and defamatory articles that led to a Justice Department investigation.
