Binance rejects claims of Iranian exposure in response to US Senate inquiry

Binance issued a formal rebuttal on March 6 to US Senator Richard Blumenthal regarding claims, fueled by media reports, that the exchange had exposure to Iranian entities and mishandled compliance concerns. Binance asserted it maintains strict Know Your Customer protocols prohibiting Iranian users. While acknowledging indirect exposure involving two entities, Hexa Whale and Blessed Trust, the exchange stressed neither transacted directly with Iran-based parties, noting both were eventually offboarded following law enforcement inquiries in 2025 and 2026.

The company detailed significant investment in its compliance infrastructure, employing over 1,500 professionals and spending hundreds of millions of dollars. Operational metrics showed a 97% decline in exposure to illicit activity wallets between January 2024 and July 2025, and a similar drop in exposure to major Iranian crypto exchanges. Binance specifically contested a Wall Street Journal claim about 2,000 accounts linked to Iranian entities, suggesting the figure might relate to VPN usage controls.

The exchange is demonstrating transparency amid regulatory pressure, noting that identity verification is mandatory and that any VPN circumvention violates terms of service. Binance also addressed personnel changes, denying firings related to compliance escalation, though confirming one termination for unauthorized user information disclosure.

(Source：Crypto Briefing)