A group of Senators have written a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent requesting that Binance’s compliance to its 2023 settlement be reviewed. The lawmakers are requesting for proof that an impartial investigation will be carried out given Binance’s ties to the Trump family and the Trump administration’s pro-crypto attitude. Will Binance be investigated? A group of 11 Democratic senators, led by Senator Elizabeth Warren sent a formal letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, demanding a “thorough and impartial” investigation into Binance. The senators’ major concern is whether or not Binance is sticking to the rules of its massive 2023 settlement. Back then, the exchange paid over $4 billion and admitted to failing to stop money laundering. As part of that deal, Binance agreed to let U.S. officials watch over its operations. However, the senators now say that new reports suggest the exchange has resumed its old ways. They also claim that as much as $1.7 billion in digital assets moved through Binance to Iranian entities , including groups linked to terrorism like the Houthis and the Islamic Revolutionary Guard Corps. CEO Richard Teng and the company’s legal representatives at Withers Bergman denied a recent Wall Street Journal (WSJ) article that alleged that the exchange fired staff for flagging $1 billion in Iranian-linked transactions, calling it “defamatory” and “categorically false.” The company’s lawyers also argued in a letter to the WSJ editorial board that the newspaper ignored detailed corrections provided by the company before the story was published. Binance stated that between January 2024 and January 2026, it reduced its direct exposure to major Iranian cryptocurrency exchanges by more than 97.3%. The company noted that while anyone can try to send money to an address on public blockchains, their job is to monitor and stop those funds. They claim they are doing this better than any of their global peers. Binance also stated that it has invested hundreds of millions of dollars into its compliance systems. Its compliance team now includes over 1,500 people, which is roughly 25% of its entire global workforce. Senator Richard Blumenthal also opened an inquiry into Binance through the Senate’s Permanent Subcommittee on Investigations. He is specifically looking for records regarding two Hong Kong-based entities that were reportedly used to funnel money toward Iran. Why are lawmakers worried about Trump’s ties to Binance? Democratic lawmakers are worried that the Trump administration might not be tough enough on Binance for several reasons. First, is the pardon of Changpeng Zhao, the founder of Binance. In October 2025, President Trump granted a “full and unconditional pardon” to Zhao, who had served four months in prison for failing to stop money laundering. Trump described the prosecution of Zhao as a “war on cryptocurrency” by the previous administration. His decision was criticized by Senator Warren, who argued that the pardon sends a message that crypto executives can break the law if they have the right political connections. Second, reports indicate that Binance has been a key supporter of “World Liberty Financial,” a crypto venture backed by President Trump and his sons. The exchange has also reportedly encouraged its 275 million users to use the USD1 stablecoin. There are even reports that an Emirati fund used USD1 to make a $2 billion investment in Binance itself, an arrangement that could earn the Trump family millions in interest every year. Because of these close ties, the senators are asking Attorney General Bondi and Secretary Bessent to prove that any investigation will be fair. They have given the DOJ and Treasury until March 13, 2026, to explain what steps they are taking to review Binance’s conduct. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
