Democratic Lawmakers Vow Oversight as DOJ Probe Into Binance Emerges

Lawmakers said they will oversee the investigation to ensure authorities hold Binance accountable if sanctions violations are confirmed.

Democratic Senators Chris Van Hollen, Elizabeth Warren, and Ruben Gallego confirmed that the United States Department of Justice is investigating whether crypto exchange Binance violated US sanctions laws by facilitating billions of dollars in transactions linked to Iran and entities associated with terrorism.

The lawmakers, all members of the United States Senate Committee on Banking, Housing, and Urban Affairs, said the probe comes after their earlier request urging US authorities to examine the exchange’s compliance with sanctions regulations.

DOJ’s Binance Investigation

In a joint statement, the senators said the reported activity raises concerns that Binance may have helped enable financial flows connected to Iranian actors and their proxies despite existing restrictions under US law. They also accused the company of previously prioritizing profits over legal compliance and said the latest reports indicate the exchange could again be operating in ways that undermine sanctions enforcement.

The lawmakers added that they plan to conduct oversight to ensure the Justice Department carries out a thorough investigation and holds the company accountable if violations are confirmed.

Earlier this week, The Wall Street Journal reported that the Department of Justice had started investigating whether Iran had used Binance to evade American sanctions. Binance pushed back against the allegations, while arguing that the media reports referenced in the Senate contain “false, unsupported, and defamatory claims.” Subsequent reports indicated that the exchange has filed a defamation lawsuit against the WSJ over the initial article that the publication released in late February.

Calls for Bipartisan Collaboration

While Binance has not yet released a statement regarding the development, it had previously noted that the federal courts in both the Southern District of New York and the Northern District of Alabama dismissed anti-terrorism claims brought against founder Changpeng “CZ” Zhao by hundreds of plaintiffs. The exchange said that it remains fully committed to working collaboratively to enforce sanctions laws without compromise, and went on to add,

“Looking forward to collaborating with both Democrats and Republicans on this.”