US Senator investigates Binance
US Senator Richard Blumenthal has opened an investigation into the world's largest cryptocurrency exchange Binance following reports of the platform's potential violation of international sanctions related to Iran.
According to sources cited by The Block, Blumenthal, who chairs the Senate Judiciary Committee, has written to Binance's management demanding information on the company's measures to combat money laundering and sanctions evasion.
The senator's investigation is linked to recent allegations that Binance allegedly allowed Iranian users to conduct transactions despite the existing restrictions against Iran. These data were obtained from anonymous informants.
Binance has long been under the scrutiny of regulators in various countries, who suspect the exchange of violating anti-money laundering legislation and failing to comply with KYC/AML standards. The company itself rejects the accusations and claims to be constantly improving its compliance systems.
Independent experts believe that Blumenthal's investigation is unlikely to lead to immediate sanctions against Binance, but it may become another blow to the platform's reputation, which is already going through difficult times due to the increasing pressure from regulators.