Senator Gallego and colleagues urged an investigation by the U.S. Treasury and Justice Departments into Binance’s reported financial activities, including potential sanctions violations related to Iran and facilitating terrorist financing. They warned of national security risks posed by Binance and noted a decline in its compliance with financial regulations since a 2023 settlement involving money laundering and sanctions violations. In a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, the lawmakers cited reports that Binance funnelled substantial amounts of digital assets to Iranian entities and expressed alarm regarding its cooperation with law enforcement.
The letter argues for stringent enforcement of sanctions, anti-money laundering, and related financial rules in light of these allegations. This request underscores growing regulatory scrutiny of crypto exchanges and reinforces calls for increased transparency and compliance. The move signals ongoing congressional pressure on major crypto platforms to increase transparency and strengthen compliance measures as authorities tighten cross-border enforcement and oversight of digital asset activity.
This development reflects broader regulatory efforts to curb illicit finance in the crypto sector. Lawmakers continue to push for enhanced reporting and compliance measures across major platforms.
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