Key Highlights
- Binance issued a detailed response to Senator Richard Blumenthal’s Feb 24 inquiry, where the crypto exchange rejected claims that Iranian-linked accounts operated on its platform
- It called reports from the Wall Street Journal, The New York Times, and Fortune “demonstrably false, unsupported by credible evidence, and defamatory.”
- Binance stated it investigated Hexa Whale and Blessed Trust following law-enforcement tips, removing Hexa Whale in August 2025 and Blessed Trust in January 2026
On March 6, Binance, the leading cryptocurrency exchange, released an official statement regarding defamatory allegations and claims against its platform by Senator Blumenthal.
We have voluntarily responded to Senator Blumenthal’s letter, which references the defamatory allegations and claims first reported by The Wall Street Journal.
We take these allegations seriously. They misrepresent both the work we do every day and the substantial progress we…
— Binance (@binance) March 6, 2026
What Binance Says in Response to Senator Blumenthal’s Serious Allegations
In the official statement, the world’s largest crypto exchange denied claims that Iranian-linked accounts operated on its platform and facilitated $1.7 billion in illegal transfers.
It highlighted the recent media reports from The Wall Street Journal, The New York Times, and Fortune as “demonstrably false, unsupported by credible evidence, and defamatory in several material respects.”
The exchange also called the senator’s claims and the press coverage an “attack on crypto.” It mentioned that allegations misinterpret its robust compliance efforts.
Senator Blumenthal, who works as Ranking Member of the Senate Permanent Subcommittee on Investigations, launched the preliminary probe after internal Binance investigators allegedly uncovered transactions routed through Hong Kong entities called Hexa Whale and Blessed Trust.
According to the senator’s letter, these transactions allow money laundering for Iranian government-linked groups, including the Islamic Revolutionary Guard Corps and Yemen’s Houthis.
This letter also raised concerns that compliance staff who flagged the activity faced suspension or termination. Senator Blumenthal demanded that the records be disclosed by March 6 on user activity, sanctions controls, and personnel decisions.
The crypto exchange also mentioned its strict know-your-customer rules that prohibit Iranian residents or users on the platform. It rejected reports of roughly 2,000 Iranian-associated accounts, suggesting any flagged activity stemmed from VPN detection enhancements rather than sanctioned entities.
The official blog stated, “Binance became aware of the concerns with these entities after initiating a proactive investigation in response to law enforcement inquiries. As a result of our investigation, we removed those entities from the Binance.com platform. Moreover, to our knowledge, no Binance account transacted directly with an Iran-based entity.”
The exchange also confirmed that it investigated the Hong Kong partners following law-enforcement tips. It offboarded Hexa Whale in August 2025 and Blessed Trust in January 2026. Binance also denied investigators for raising concerns, clarifying most departures were voluntary or linked to data-protection violations.
Binance also mentioned its industry-leading compliance program in the response. The company pointed to over 1,500 dedicated compliance staff, hundreds of millions invested in monitoring tools, and partnerships with global law-enforcement networks.
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