Two members of the U.S. Congress, Sean Casten and Gregory Meeks, in an official letter to the U.S. government, called for explanations regarding the role of cryptocurrency exchange Binance in large-scale digital currency transfers.
In the letter, published on Thursday, May 14, it was claimed that about $1.7 billion in cryptocurrency had been transferred through Binance to wallets linked to armed groups and forces affiliated with the Iranian regime. According to the lawmakers, part of this financial network was likely used to circumvent U.S. sanctions.
The report also referred to Tehran-backed groups such as the Houthis in Yemen. The members of Congress emphasized that these transactions took place while Binance had been under scrutiny by U.S. authorities following regulatory agreements and commitments to implement strict anti-money laundering regulations.
They also recalled that Binance admitted in 2023 to violating certain U.S. financial laws, but despite regulatory agreements, reports indicate that suspicious transactions have continued, some of which have been attributed to activities linked to the Iranian regime.
The two members of Congress asked the U.S. Department of Justice and the Treasury Department to explain the effectiveness of the controls imposed on Binance and the possible reasons for failing to prevent these financial transfers.
The letter also expressed concern over the use of cryptocurrencies to evade sanctions imposed on the Iranian regime and requested a comprehensive report on how Binance’s operations are being monitored.
