Binance denies links to Iranian entities in platform transactions, responds to Senate inquiry and removes risky accounts.
Binance Denies Link Between Platform and Iranian Entities
Binance, the world’s largest cryptocurrency exchange, has denied accusations that its platform enabled transactions with Iranian entities. In a letter to U.S. Senators, Binance’s legal team stated that no direct transactions were found linking its users to Iranian organizations, contradicting earlier media reports.
Internal Review and Removal of Accounts
According to the letter, Binance conducted an internal investigation following the Senate’s inquiry. The review identified indirect exposure to wallets that may have connections to Iran but concluded that no accounts on the platform transacted directly with Iranian entities. In response, Binance removed two specific accounts, Hexa Whale and Blessed Trust, from the platform in August and January respectively, after concluding their interactions posed risks.
Response to Media Reports
Binance responded sharply to the media coverage that initiated the Senate investigation, accusing outlets such as the New York Times, Wall Street Journal, and Fortune of disseminating “demonstrably false” and “defamatory” information. The company maintains that these reports are inaccurate and damaging.
Background and Context
The probe into Binance's activities was prompted by Senator Richard Blumenthal, who initiated an inquiry into the exchange's potential involvement with Iran-linked groups, including Yemen's Houthi militants. This followed internal Binance investigations that uncovered transactions associated with Iranian entities.
Compliance and Accountability
Binance’s lawyers defended the company’s compliance procedures, stating that they proactively investigate credible risks and remove suspicious accounts. They also addressed claims that compliance investigators were dismissed, asserting that most departures were voluntary and only one employee was terminated for policy violations. Binance maintains that it has a robust and continuously strengthening compliance program.
The letter concludes with Binance reiterating its commitment to stringent compliance measures, highlighting its ongoing efforts to mitigate risks and cooperate with law enforcement.
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