Binance has issued a formal response to a congressional inquiry after recent reports raised questions about its anti-money laundering practices and possible exposure to transactions linked to Iran.
On March 6, the company confirmed that it had replied to a letter sent on February 24 by U.S. Senator Richard Blumenthal, who requested clarification about the exchange’s compliance controls.
Binance explained that the investigation is based on media articles that the company believes are misleading and not trustworthy. The company emphasized that it is committed to the fight against financial crime, has strict KYC procedures, and bans Iranian users.
Users are required to pass the Know Your Customer test, and using tools like a VPN is not permitted. Binance has 300 million users, and compliance is vital to maintaining trust.
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Binance Compliance Investment and Workforce Expansion
Binance also mentioned how large its compliance model is. The company stated it has invested hundreds of millions of dollars in compliance programs in the last few years, including enhancing its monitoring capabilities and working with regulators.
It has a team of compliance staff that exceeds 1,500 worldwide, including experts in sanctions, financial crime, and counter-terrorist financing.
It uses over 25 systems to detect suspicious transactions. These systems include onboarding, transactions, sanctions, and behavior.
According to the blockchain data, exposure to wallets related to illicit activity decreased from 0.284% of the trading volume in early 2024 to 0.009% in July 2025, reflecting a 97% drop.
The platform works closely with global authorities. In 2025, it processed over 71,000 law enforcement requests. Within three years, the company assisted in seizing more than $752 million in illegal funds, of which $579 million was for law enforcement in the U.S.
The Beacon Network and T3 Financial Crime Unit, with whom Binance has collaborated, froze over $300 million in suspected illegal funds in their first year of operation.
Investigations Lead to Account Removals
The letter sent to Congress examined two trading entities, Hexa Whale and Blessed Trust, which had been connected to wallet addresses that could have been involved in financing terrorism.
The network stated that it began to review these cases in 2025 when law enforcement requested it. The change involved the removal of the Hexa Whale account in August 2025, followed by the offboarding of the Blessed Trust account following further investigation in early 2026.
According to the company, this is an example of their compliance process, which involves monitoring, cooperation with authorities, and offboarding high-risk accounts.
