Blumenthal Seeks Binance Monitor Updates from DOJ, FinCEN

U.S. Senator Richard Blumenthal has escalated congressional oversight of Binance, the world's largest cryptocurrency exchange, by sending letters to the Department of Justice and the Treasury Department's Financial Crimes Enforcement Network on April 17. The correspondence seeks updates on the status and effectiveness of independent monitors overseeing the company's compliance with anti-money laundering laws and U.S. sanctions, amid allegations of transactions linked to Iran.

Blumenthal, a Democrat from Connecticut who chairs the Senate Permanent Subcommittee on Investigations, expressed concern in the letters about "mounting allegations of dangerously lax anti-money laundering prevention by Binance." He requested details on whether the monitors have identified any misconduct, filed reports, or ensured the exchange is implementing required reforms. The senator set a deadline of April 24 for responses from the agencies. Officials from the Justice Department and FinCEN declined to comment when contacted.

The inquiry stems from Binance's 2023 settlement with U.S. authorities, in which the exchange paid a $4.3 billion penalty and pleaded guilty to charges including violations of the...