Senate Democrats Urge Treasury and DOJ to Investigate Binance Over Sanctions and Terrorism Financing Concerns

U.S. Senate Democrats are intensifying scrutiny of cryptocurrency exchange Binance, urging the Treasury Department and Department of Justice (DOJ) to investigate the company’s sanctions compliance and anti-money laundering (AML) controls. In a letter sent Friday to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, nine senators raised concerns about reports alleging potential terrorism financing and sanctions violations linked to the exchange.

The lawmakers, including Senators Elizabeth Warren, Mark Warner, Ruben Gallego, and Angela Alsobrooks, cited media claims that Binance may have processed transactions tied to terrorist groups or sanctions evaders. The reports also alleged that compliance staff who identified suspicious activity were dismissed. In their letter, the senators warned that weak crypto compliance safeguards could pose a serious national security risk if large sums continue to move through digital asset platforms unchecked.

The request follows a separate inquiry earlier this week from Senator Richard Blumenthal, a senior member of the Senate Homeland Security Committee, who asked Binance directly for information regarding its compliance practices. While Democrats are currently not in the Senate majority and lack full investigative authority, the coordinated effort signals growing bipartisan concern about illicit finance in the cryptocurrency industry.

Binance co-CEO Richard Teng has previously dismissed parts of the media coverage as “inaccurate” and “defamatory.” The company has not publicly responded to the latest Senate letter. The scrutiny also revisits Binance’s 2023 settlement with U.S. authorities over past failures in anti-money laundering and know-your-customer (KYC) compliance. Lawmakers are seeking clarity on whether the exchange has met the obligations outlined in that agreement.

The issue arrives amid ongoing negotiations over the Digital Asset Market Clarity Act, proposed U.S. crypto legislation designed to strengthen oversight of digital asset markets. Illicit finance protections remain a key sticking point. Senators also referenced Binance’s reported ties to World Liberty Financial and the USD1 stablecoin, along with former President Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao, further adding political weight to the debate.