U.S. Democratic senators urge probe into whether Binance is complying with sanctions

Democratic U.S. senators have urged the Treasury Department and the Justice Department to investigate Binance’s sanctions compliance and its anti-money-laundering framework.

On the 27th (local time), nine Democratic senators — including Elizabeth Warren, Mark Warner and Ruben Gallego — sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi requesting an investigation into whether Binance violated sanctions and into its system for preventing the flow of illicit funds. The senators said authorities should also examine whether Binance has properly fulfilled its obligations since the agreement it reached with U.S. authorities in 2023.

In the letter, the lawmakers warned that if large sums can pass through Binance to terrorist groups or sanctions-evading actors, it would pose a serious threat to national security. Recent reports have also alleged that Binance dismissed some compliance staff who identified suspicious transactions. In response, Richard Teng, co-chief executive officer (CEO) of Binance, has pushed back, saying the reporting was “inaccurate and defamatory.”

The move also intersects with the 'CLARITY Act.' currently under discussion in the U.S. Congress. Safeguards to prevent illicit money flows in the digital-asset (cryptocurrency) market remain one of the bill’s key sticking points. Mark Warner is known to be actively involved in aligning the bill’s legislative language.

The letter also referenced links between President Donald Trump’s family’s digital-asset business and Binance. The senators raised potential conflicts of interest, pointing to Trump’s pardon of Changpeng Zhao (CZ), the former CEO of Binance. However, Democrats are not currently the majority party in the Senate, limiting their direct investigative authority.