Key takeawaysBinance published its official response to a congressional inquiry from U.S. Senator Richard Blumenthal.The company rejected media allegations regarding sanctions compliance, calling them “false, unsupported and defamatory.”Binance said it employs over 1,500 compliance specialists and has invested hundreds of millions of dollars in compliance infrastructure.The exchange processed 71,000 law-enforcement requests in 2025 and helped authorities seize over $752 million in illicit funds.Binance Issues Formal Response to U.S. Senate InvestigationBinance released a formal statement responding to a February 24 inquiry from Senator Richard Blumenthal and the U.S. Senate Permanent Subcommittee on Investigations.The exchange said the inquiry relied heavily on recent media reports from outlets including The New York Times, Fortune and The Wall Street Journal, which it claims contain significant inaccuracies about Binance’s compliance program and sanctions controls.Binance stated it “takes its legal and compliance obligations seriously” and remains committed to cooperating with regulators and law enforcement agencies globally.Company Highlights Compliance InfrastructureBinance emphasized that it has significantly expanded its compliance operations in recent years.According to the company:More than 1,500 employees now work in compliance roles worldwideHundreds of specialists focus on sanctions enforcement, counter-terrorism financing and financial crime investigationsThe exchange deploys over 25 compliance and monitoring tools, including systems for KYC verification, sanctions screening, behavioral analytics and transaction monitoringThe company also noted it maintains strict Know Your Customer (KYC) requirements and prohibits users residing in Iran from accessing the platform.Binance Says Investigations Into Two Entities Were ProactiveThe Senate inquiry referenced two entities — Hexa Whale and Blessed Trust — that allegedly had indirect links to wallets connected with Iranian actors.Binance stated both cases were proactively investigated after requests from law enforcement agencies.Following internal reviews:Hexa Whale was offboarded in August 2025Blessed Trust was removed in January 2026The exchange added that no Binance accounts directly transacted with Iran-based entities, according to its findings.Law Enforcement Cooperation and Asset RecoveryBinance highlighted its cooperation with global law enforcement agencies, noting:Over 71,000 law enforcement requests processed in 2025More than $752 million in illicit assets seized with Binance assistance over the past three yearsNearly $579 million recovered for U.S. authoritiesThe exchange also reported that its exposure to wallets linked to illicit activity declined from 0.284% of exchange volume in early 2024 to 0.009% by mid-2025, representing a 97% reduction.Exposure to major Iranian crypto exchanges reportedly dropped 97.3% over the same period.Binance Addresses Employee AllegationsThe inquiry also referenced claims regarding employees who worked on compliance investigations.Binance stated that:Some staff departures were normal turnover for a large organizationOne employee was terminated for unauthorized disclosure of internal user dataNo employees were fired for raising compliance concernsThe company said it strictly enforces policies protecting user privacy and internal data security.Binance Reaffirms Commitment to ComplianceIn its closing remarks, Binance acknowledged that absolute zero risk is impossible on public blockchains, since funds can be sent to exchange addresses without prior approval.However, the exchange said its monitoring systems and compliance controls are designed to detect, investigate and mitigate suspicious activity quickly.Binance concluded that it will continue strengthening its compliance framework while cooperating with authorities and supporting the development of the global crypto ecosystem.