Senator Richard Blumenthal has intensified his investigation into Binance, sending a follow-up letter on April 1 to co-CEO Richard Teng. The letter demands that the cryptocurrency exchange clarify apparent inconsistencies between its testimony to the Senate and recent media reports about transactions linked to Iran.
The senator expressed concern that Binance may have provided “misrepresentations or misleading information” to both the Senate subcommittee and the public. He is now demanding the documents and records the company used to prepare its earlier responses.
This action follows reports by Fortune and The New York Times tracing roughly $1.7 billion in flows from Binance-linked accounts to entities with ties to Iran. This figure is significantly larger than the $110,000 Binance cited last year for direct transactions with four major Iranian exchanges. Blumenthal stated that this discrepancy, along with Binance’s partial or delayed responses to the Senate Permanent Subcommittee on Investigations, raises “further alarms about its candor and compliance with Congressional oversight.”
The letter includes a detailed list of specific questions and document requests. Blumenthal asked Binance to disclose whether any accounts sent or received funds to or from Iran-linked wallets mentioned in the reports and to provide those wallet addresses. He also demanded a full, year-over-year accounting of transactions between Binance and known Iranian exchanges, and an explanation of the methodology used to calculate the $110,000 figure.
Furthermore, Blumenthal pressed Binance on its internal compliance practices. He inquired whether the exchange has removed, weakened, or relaxed any detection, screening, freezing, or reporting mechanisms since January 1, 2025. He also sought clarity on whether Binance has ever declined to investigate or suspend accounts tied to individuals in Iran, including those using VPNs or “drop accounts.”
Additionally, the senator asked whether Binance has ever disciplined compliance staff who raised internal concerns or provided information to law enforcement, referencing reports of personnel being dismissed for “unauthorized disclosure.”
Blumenthal criticized what he described as delayed or inadequate action by Binance in response to law enforcement warnings. He cited instances where Binance allegedly took months to respond to warnings and remove entities linked to suspected terrorist financing. He also noted that Binance appeared to have labeled some accounts with internal tags like “Don’t block. Internal accounts,” which he argued should have prompted greater scrutiny rather than protection.
The senator requested exact dates for when involved accounts were opened, when they began sending funds to Iranian intermediaries, when they were reported to U.S. law enforcement, and when they were suspended. He also demanded explanations for any delays between notification and action.
Invoking Senate rules, Blumenthal has given Binance until April 14 of this year to provide the requested records.
Frequently Asked Questions
FAQs Senate Inquiry into Binance CEOs New Letter
BeginnerLevel Questions
What is this Senate inquiry about
This is a formal investigation by US Senators into whether Binance a major cryptocurrency exchange and its former CEO Changpeng Zhao misled Congress and the public about the companys operations and compliance with US laws
Who sent the new letter and to whom
A bipartisan group of US Senatorsincluding Senators Elizabeth Warren Chris Van Hollen and Roger Marshallsent a new letter to the current CEO of Binance Richard Teng They are demanding answers about past statements they believe were false or misleading
What are the main concerns in the letter
The Senators are concerned that Binance may have lied about
The existence of separate US and international entities
Who had control over user assets and trading
The companys relationships with subsidiaries and its efforts to evade US regulators
Why does this matter to me if I dont use Binance
This inquiry highlights broader issues of accountability consumer protection and regulatory compliance in the cryptocurrency industry It affects market trust and could influence future laws that impact all crypto users and companies
What is a misrepresentation in this context
A misrepresentation means providing false incomplete or misleading information Here the Senators suspect Binance may have downplayed the connections between its global and US platforms and who was really in control
Advanced Practical Questions
How is this new letter different from previous congressional actions against Binance
This letter is a direct followup to a 2023 inquiry The Senators believe new evidenceincluding Binances 43 billion settlement with the US government and CZs guilty pleacontradicts earlier testimony and statements from the company prompting them to seek clarification under threat of perjury
What legal risks does Binance face from this inquiry
Beyond the already settled criminal charges this inquiry could lead to
Perjury Charges If individuals knowingly lied to Congress
Increased Regulatory Scrutiny From agencies like the SEC and CFTC on ongoing civil cases
New Legislation Stricter laws governing crypto exchanges could be fasttracked