Binance Faces Fresh Senate Scrutiny Over Possible Terror Funding

Nine U. S. senators, many of whom helped draft the Digital Asset Market Clarity Act, sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. They want the agencies to investigate Binance’s compliance with sanctions and its safeguards against illicit money, after reports suggested the exchange might have allowed terrorist funding. The request follows a separate inquiry by Senator Richard Blumenthal, who also asked Binance for information. Though the senators are not in the majority, they are pressing their concerns hard. Binance’s co‑CEO, Richard Teng, called earlier media claims “inaccurate” and “defamatory. ” The company has not yet responded to the senators’ letter.In the letter, lawmakers highlighted worries that weak controls could let large sums move to sanctions violators or terrorist groups. They cited Binance’s 2023 settlement and asked for details on how the exchange is meeting those obligations. The issue of preventing illicit finance in crypto remains a key point in the ongoing bill that would regulate digital assets. Senator Mark Warner is leading efforts to shape that part of the legislation. The senators also noted Binance’s connection to World Liberty Financial, a Trump‑backed crypto firm. They referenced former President Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao, who had served a brief prison sentence for past anti‑money laundering violations. Overall, the letter signals heightened congressional pressure on Binance to tighten its compliance framework and address national security concerns linked to cryptocurrency transactions.