The U.S. Department of the Treasury reportedly sent Binance a private letter pressing the exchange on compliance with its 2023 settlement duties.
Summary
- Treasury reportedly asked Binance for records and interviews tied to possible sanctions compliance concerns.
- Binance said it is giving the independent monitor “full cooperation and transparency” amid fresh scrutiny.
- U.S. attention on Iran-linked crypto flows has grown in recent weeks.
The request followed fresh claims that Iran-linked entities moved large sums through the platform. Bloomberg reported that Treasury sought employee interviews and records tied to possible sanctions violations.
The Information also reported that Treasury demanded Binance comply with the monitoring program imposed after its 2023 deal with U.S. authorities. That agreement followed anti-money laundering and sanctions cases that ended with large penalties and long-term oversight.
Binance says it is cooperating
Binance said it remains engaged with the monitor and U.S. agencies. The exchange said, “We welcome constructive feedback from the Treasury” and added that it is giving the monitor “full cooperation and transparency.”
The comments came after lawmakers raised questions about whether Binance had met the terms of its settlement. A February Senate letter asked Treasury and the DOJ to review Binance’s sanctions controls after reports tied the exchange to Iran-linked activity.
Additionally, Treasury’s 2023 settlement required Binance to pay billions in penalties and accept monitoring. FinCEN said its order imposed a five-year monitorship and required Binance to complete major compliance changes, including a full exit from the U.S. market.
The Treasury said the settlement gave officials access to Binance books, records, and systems for five years through a monitor. It also warned that failure to meet the obligations could expose Binance to more penalties, including a suspended $150 million penalty.
Iran-linked crypto claims widen the story
Related crypto.news coverage said internal data reviewed by the Financial Times showed 13 suspicious Binance accounts handled $1.7 billion in crypto, including about $144 million after the 2023 settlement. The report also said some wallets had links to funds later frozen over alleged Iran-backed activity.
This comes as U.S. enforcement around Iran-linked crypto flows grows. Crypto.news recently reported that the U.S. seized nearly $500 million in Iranian crypto assets, above a previously reported $344 million USDT freeze tied to Iran.
Binance’s monitoring issue also follows earlier reports that the exchange had sought an early end to a DOJ-appointed monitor. However, crypto.news noted that Binance also had a separate Treasury-linked monitorship through FinCEN, with no clear sign that this oversight was under the same review.
