NEWS: Sen. Schiff Leads Probe of Binance Routing Funds to Iran-Backed Proxy Groups, Raises Conflict of Interest from Trump Ties

Senators emphasize extensive violations of sanctions and anti-money laundering laws by largest cryptocurrency exchange

Washington, D.C. - Today, U.S. Senator Adam Schiff (D-Calif.) and colleagues are probing cryptocurrency exchange Binance's role in facilitating sanction evasions by the Iranian regime through millions of dollars in cryptocurrency transactions on the exchange. The Senators inquiry to the administration points to reports that Binance executives allowed Iranian "antisanction" operator Babak Zanjani to coordinate the exchange of $850 million in the past two years as part of a larger effort to move funds to IRGC-affiliated accounts, including transactions just one month before President Trump initiated military operations with Iran.

"Despite this reporting and the guilty pleas of Binance executives, President Trump, his family, and Special Envoy to the Middle East, Steve Witkoff, continue to use Binance to prop up their cryptocurrency venture, World Liberty Financial (WLF). This reporting raises grave ethical and national security concerns, including that President Trump and Mr. Witkoff, one of the Administration's lead negotiators in Iran, could be financially enriched through their Binance-linked cryptocurrency venture while the Trump Administration engages in a military operation against Iran," the Senators wrote in a letter to Secretary of the U.S. Department of Treasury Scott Bessent and U.S. Department of Justice Acting Attorney General Todd Blanche.

The Senators point to Binance's long history of involvement with sanctions evasion. In 2023, Binance agreed to a $4 billion settlement with the U.S. government for violations of anti-money laundering and sanctions laws. In another instance, a group of internal investigations found more than $1.7 billion had flowed through Binance accounts to Iran-backed proxy groups.

Regardless of these revelations, President Trump has kept close ties with Binance - even pardoning Binance founder Changpeng Zhao (CZ) after the company donated software to help launch Trump's family-backed cryptocurrency venture, World Liberty Financial. Trump's stablecoin, USD1, is also backed by Binance.

"In April 2026, Binance operated a reward scheme designed to encourage individuals to hold or trade USD1, driving up its value and further enriching the Trump and Witkoff families. Furthermore, Binance currently holds nearly 80 percent of all USD1 tokens on the market, giving the firm significant influence over the profitability of the token," the Senators wrote.

Last year, Senators Schiff and Warren introduced a resolution condemning Trump's pardoning of CZ which Senate Republicans blocked. Schiff has previously raised concern of Trump's political interference and the Department of Justice's decision to dismiss criminal charges against Turkish bank Halkbank for illegally helping Iran conceal billions of dollars while providing a financial lifeline for Iran's support of terrorism around the world.

In addition to Schiff, the letter is signed by U.S. Senators Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), and Chris Van Hollen (D-Md.).

The full text of the letter can be found here and below.

Dear Secretary Bessent and Acting Attorney General Blanche:

We are writing to seek information regarding the operations of cryptocurrency exchange Binance and the company's role in facilitating sanctions' evasion by the Iranian regime. Recent reporting found that Binance executives permitted "self-described Iranian 'antisanction' operator, Babak Zanjani," who was added to the U.S. sanctions list in January 2026, to conduct over $850 million in cryptocurrency transactions over the past two years, despite multiple internal warnings. These transactions were a part of a wider network using cryptocurrency to funnel funds to the Iranian Revolutionary Guard Corps (IRGC). Despite this reporting and the guilty pleas of Binance executives, President Trump, his family, and Special Envoy to the Middle East, Steve Witkoff, continue to use Binance to prop up their cryptocurrency venture, World Liberty Financial (WLF). This reporting raises grave ethical and national security concerns, including that President Trump and Mr. Witkoff, one of the Administration's lead negotiators in Iran, could be financially enriched through their Binance-linked cryptocurrency venture while the Trump Administration engages in a military operation against Iran.

As recently as January 2026, reporting showed that Zanjani and his allies used Binance to move funds to IRGC-affiliated accounts, a month before President Trump initiated military operations with Iran. Binance facilitated several other large, Iran-linked transactions over the past year, including moving over $107 million for Iran's central bank. Between 2024 and 2025, Binance accounts funneled $260 million to accounts with clear ties to Iranian terrorist financing.

This reporting comes shortly after an internal Binance investigation found that more than $1.7 billion has flowed through Binance to accounts connected to Iran-backed proxy groups since 2023, including to the Houthi militia in Yemen. After becoming aware of the investigation, Binance executives fired or suspended many of the investigators involved in the report Even the Justice Department is investigating Binance for misconduct related to these transactions. In response to another Congressional inquiry, Binance disputed the accuracy of media reporting surrounding its continued support for Iranian terrorism. However, it did not deny allegations that wallets identified in their internal investigation were used to support terrorist financing indirectly.

This is not the first time Binance has drawn scrutiny for supporting Iranian sanctions violations. In 2023, Binance agreed to a $4 billion settlement with both the Departments of Justice and Treasury for violations of the U.S. anti-money laundering and sanctions laws, which included supporting Iran-backed terrorist organizations like Hamas and the Palestinian Islamic Jihad. In addition, Binance CEO Changpeng Zhao (CZ) pled guilty to failing to maintain an effective anti money laundering program in violation of the Bank Secrecy Act.

Despite this deeply troubling conduct, the Trump and Witkoff families have reportedly continued to profit from their WLF cryptocurrency venture while maintaining close ties to Binance. Just months before President Trump pardoned Binance CEO CZ, Binance donated software to help launch WLF. Binance also used USD1, a cryptocurrency associated with WLF, to facilitate a $2 billion investment from a state-backed fund from Abu Dhabi, taking USD1 from a "small project" to "one of the largest stablecoins in the world" overnight. In April 2026, Binance operated a reward scheme designed to encourage individuals to hold or trade USD1, driving up its value and further enriching the Trump and Witkoff families. Furthermore, Binance currently holds nearly 80 percent of all USD1 tokens on the market, giving the firm significant influence over the profitability of the token.

At minimum, this web of close familial relationships and official U.S. government decision- making, particularly as the U.S. is engaged in a military operation in Iran, raises questions about conflicts of interest.

In light of these concerns, we are requesting answers to the following questions by June 19, 2026:

1. As part of its 2023 settlement with the Departments of Justice and Treasury, Binance agreed to maintain two independent Compliance Monitors for three and five years. In September 2025, reports suggested that "federal prosecutors are in discussions with Binance over a requirement to maintain an outside compliance monitor," possibly "moving toward a potential deal with the US Justice Department that would allow it to drop a key oversight requirement in its $4.3 billion settlement." The Departments of Justice and Treasury have failed to meaningfully respond to congressional inquiries in recent months regarding its oversight of Binance.
   • Do these Compliance Monitors continue to remain in place, per the settlement agreement?
   • Please provide all records of compliance Binance has provided to your agencies and preserve all communications between agency officials and Binance staff or investors regarding the Compliance Monitor agreement and appointment.
   • What measures do the Treasury and Justice Departments employ to ensure Compliance Monitors appointed as a condition of settlement function adequately?
2. The reporting above indicates that, despite Binance's agreement to host Compliance Monitors, Binance facilitated nearly $2 billion in transactions involving Iran.
   • What oversight of these transactions has the Treasury or Justice Departments conducted? Please preserve all relevant records between agency officials.
3. Is the Justice Department investigating Binance's continued role in facilitating over $1.7 billion in transactions involving Iran after the settlement agreement?
   • What is the status of this investigation?
4. Is the Treasury investigating Binance's continued role in facilitating over $1.7 billion in transactions after the settlement agreement?
   • What is the status of the investigation?
5. What steps are the Justice and Treasury Departments taking to prevent any current or future terrorist financing activity through cryptocurrency exchanges?
6. Have either of your departments received any formal or informal communications or directives from other Administration personnel regarding investigations into Binance? If so, please provide those directives and any related communications.

We look forward to reviewing your timely responses regarding this important matter.

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