Nine Democratic senators have formally urged the US Department of the Treasury and the Department of Justice to investigate Binance over concerns tied to sanctions compliance and illicit finance safeguards. The request follows recent reports alleging that funds may have moved through the global crypto exchange in ways that raise national security concerns.
In a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, the lawmakers asked federal authorities to examine whether Binance’s internal controls remain sufficient to prevent money laundering and sanctions violations. The senators expressed concern that weaknesses in compliance systems could allow illicit actors to exploit digital asset platforms.
Among the signatories are Senators Richard Blumenthal and Elizabeth Warren, along with several others who have played central roles in negotiations surrounding the proposed Digital Asset Market Clarity Act. That legislation remains under discussion in the Senate, with illicit finance risk among the most debated issues.
The letter cites recent media reports suggesting potential compliance lapses at Binance and claims that certain personnel involved in identifying suspicious transactions may have been dismissed. Lawmakers have requested clarity on whether the exchange continues to meet obligations outlined in its prior settlement with US authorities in 2023, which addressed earlier anti money laundering and know your customer deficiencies.
Binance co chief executive Richard Teng has publicly stated that some earlier reports were inaccurate and defamatory. As of publication, the company had not issued a detailed response to the latest letter seeking a federal investigation.
Senator Blumenthal previously indicated that he had initiated inquiries into Binance and requested additional information directly from the company. However, Democratic senators do not currently hold majority control in relevant committees, limiting their authority to independently compel investigations. Their latest action instead calls on federal agencies with enforcement powers to review the allegations.
The lawmakers argue that the Commodity Exchange Act and broader federal financial crime statutes require robust oversight to prevent terrorist financing and sanctions evasion. They maintain that if substantial funds were allowed to flow through Binance without adequate monitoring, it would raise significant concerns about systemic risk within the crypto sector.
The letter also references reported ties between Binance and World Liberty Financial, a digital asset venture associated with former President Donald Trump and the USD1 stablecoin initiative. Additionally, it mentions Trump’s prior pardon of Binance founder Changpeng Zhao, who pleaded guilty to compliance related violations and served a prison sentence connected to past anti money laundering failures.
The timing of the request coincides with delicate negotiations over crypto market regulation in Congress. Senator Mark Warner has taken a leading role among Democrats seeking to refine legislative language on illicit finance safeguards within the pending bill.
Federal agencies have not publicly indicated whether a formal investigation will be launched. The matter underscores ongoing scrutiny of major crypto exchanges as policymakers seek to strengthen compliance standards and align digital asset oversight with national security priorities.
