Binance, through its lawyers, told a US Senate investigation that it found no evidence that accounts on its platform transacted directly with Iranian entities, refuting allegations that $1.7 billion in cryptocurrency flowed through the exchange to Iran-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 review found only indirect exposure to wallets that may have had ties to Iran, and that accounts linked to the activity were removed.
Binance also attacked the media coverage that sparked the investigation, calling reports from outlets including the New York Times, the Wall Street Journal and Fortune “demonstrably false” and “defamatory in several material respects.”
The response comes after Blumenthal opened an investigation into whether the exchange allowed funds to move to organizations linked to Iran, including Yemen’s Houthi militants. The investigation followed 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 seeking information about transactions between Binance wallets and several external addresses that authorities believe could be related to terrorist financing.
According to the letter, the exchange provided user logs and transaction information to investigators and continued to examine the activity internally.
Lawyers for the exchange said Binance identified two entities, Hexa Whale and Blessed Trust, whose accounts had interacted with the flagged 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 that most of the departures were voluntary and that one employee was fired for violating the company’s policy on disclosing internal user information.
“When there is credible risk information, Binance investigates, mitigates, removes accounts, and informs the appropriate authorities,” the letter said. “Binance has a rigorous compliance program that is constantly being strengthened.”
