Senate Democrats Ask Treasury, DOJ to Probe Binance Over Alleged Terrorist, Sanctions Flows

Senate Democrats have asked the U.S. Treasury and Justice Departments to open probes into Binance’s sanctions compliance and anti‑illicit‑finance controls, following media reports that the exchange may have allowed funds to flow to terrorist groups and other sanctioned actors.

In a Friday letter, nine senators — including Elizabeth Warren, Ruben Gallego, Angela Alsobrooks and Mark Warner — urged Treasury Secretary Scott Bessent and Attorney General Pam Bondi to investigate recent allegations and to provide information about Binance’s compliance with the terms of its 2023 settlement. The lawmakers wrote that “these allegations raise grave concerns that poor illicit finance controls at Binance remain a significant threat to national security,” adding that “our illicit finance controls are dangerously compromised if enormous sums can flow through Binance to terrorist groups or sanctions evaders.”

The request follows earlier action this week from Senator Richard Blumenthal, who said he had sent his own inquiry to Binance. But Democrats currently lack the Senate majority that would give them control over committee investigations, limiting the immediate scope of congressional enforcement.

Reports prompting the probe alleged that some compliance staff who uncovered potentially illicit transactions were later fired. Binance co‑CEO Richard Teng has called parts of the coverage “inaccurate” and “defamatory.” A company spokesperson did not immediately respond to requests for comment about the senators’ letter.

The Democrats’ move lands amid delicate negotiations over new U.S. crypto legislation — including the Digital Asset Market Clarity Act — where anti‑money‑laundering and sanctions enforcement remain unresolved topics. Senator Warner has led Democrats’ efforts to shape language on illicit‑finance protections in the bill.

The letter also touched on Binance’s ties to other politically sensitive matters: it acknowledged connections between the exchange and World Liberty Financial, the Trump‑backed venture behind the USD₮ stablecoin, and it referenced President Trump’s pardon of Binance founder Changpeng “CZ” Zhao, who previously pleaded guilty and served four months in prison related to the company’s past shortcomings on know‑your‑customer and anti‑money‑laundering rules.

What happens next could increase regulatory scrutiny on Binance and may influence remaining negotiations over U.S. crypto rules, as lawmakers press for stronger guardrails against the misuse of digital‑asset platforms.

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