Nine Democratic senators have formally requested that the US Department of the Treasury and the Department of Justice investigate Binance over concerns tied to sanctions compliance and illicit finance controls. The letter, addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, follows recent media reports alleging that funds may have flowed through the global crypto exchange to entities linked to terrorist organizations or sanctions evasion.
Among the lawmakers backing the request are Senators Richard Blumenthal and Elizabeth Warren, along with several others involved in ongoing negotiations surrounding federal digital asset legislation. The senators argue that the allegations raise serious national security concerns and warrant a thorough federal review of Binance’s compliance systems.
The letter highlights claims that certain internal compliance personnel who reportedly identified suspicious transactions were later dismissed. Lawmakers are seeking clarification on whether Binance has maintained adequate anti money laundering and know your customer controls, particularly following its 2023 settlement with US authorities related to earlier compliance failures.
Binance co chief executive Richard Teng has publicly described some prior reports as inaccurate and defamatory. As of publication, the company had not issued a detailed response to the latest request for investigation. The senators have asked federal agencies to assess whether the exchange remains fully compliant with sanctions laws and financial crime prevention obligations.
The timing of the letter is significant. Discussions in the Senate over the proposed Digital Asset Market Clarity Act remain ongoing, with illicit finance risk standing out as a central unresolved issue. Several of the lawmakers pressing for an investigation are directly engaged in shaping the legislative language governing crypto market oversight.
Senator Mark Warner has taken a leading role among Democrats working to refine provisions related to anti money laundering safeguards within the bill. The lawmakers’ request signals that concerns about enforcement and compliance standards at major exchanges could influence how Congress approaches final regulatory frameworks.
The senators also referenced reported connections between Binance and World Liberty Financial, a crypto venture associated with former President Donald Trump and the USD1 stablecoin project. Additionally, the letter mentioned Trump’s prior pardon of Binance founder Changpeng Zhao, who had pleaded guilty to charges linked to past anti money laundering shortcomings and served a prison sentence.
Democrats in the Senate currently do not hold majority control over committee investigations, limiting their direct oversight authority. However, formal requests to Treasury and Justice departments can prompt reviews or enforcement actions if agencies determine that credible risks exist.
The outcome of any federal inquiry could have broader implications for the crypto industry, particularly as policymakers debate how to balance innovation with national security and financial integrity concerns.
