Connecticut Sen. Richard Blumenthal questioned U.S. authorities overseeing Binance about whether the company was complying with anti-money laundering laws and sanctions as part of its court-mandated surveillance program in 2023.
According to a report Published by Fortune on Friday, Blumenthal sent letters to the Department of Justice and the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), requesting details about Binance’s compliance.
Binance and its former CEO Changpeng âCZâ Zhao made an agreement in 2023, during which the exchange would pay $4.3 billion to settle civil regulatory enforcement actions, and CZ would plead guilty to a felony charge.
The deal also required Binance to be subject to monitoring and reporting requirements from U.S. officials.
Blumenthal’s letter said he was concerned about “growing allegations of dangerously lax anti-money laundering prevention by Binance.” Fortune reported that DOJ and FinCEN officials responsible for overseeing the exchange as part of the deal reportedly had no comment.
Related: Crypto billionaire in prison: CZ’s autobiography revisits the turbulent era of Binance
The letter followed reports that Binance was under surveillance regarding US sanctions imposed on Iran.
The crypto exchange has reportedly fired the people responsible for telling Binance executives that $1 billion was flowing through the platform to entities linked to Iran. A spokesperson for the exchange denied the claims.
In February, a group of senators urged Treasury Secretary Scott Bessent and former Attorney General Pamela Bondi, who was fired by US President Donald Trump in April, to conduct a “rapid and comprehensive review” of Binance’s compliance controls.
Trump-Binance ties still under scrutiny
Some US lawmakers have claimed that Binance’s ties to Trump create conflicts of interest for the US president and his family’s crypto businesses.
In March 2025, a UAE-based entity purchased a $2 billion stake in Binance using the $1 stablecoin issued by World Liberty Financial, the company co-founded by Trump and his sons.
Trump too pardoned former Binance CEOCZ, in October 2025 after serving four months in prison as part of his 2023 guilty plea.
Review: Will the CLARITY Act be good â or bad â for DeFi?
