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Home/Markets & Investing/BINANCE · STABLECOIN US LEGISLATION

Sen. Blumenthal Probes DOJ and Treasury Over Binance's $1.7 Billion Iran-Linked Flows

LL

Lyra Lockwood

Binance · Apr 17, 2026

Over $1.7 billion in crypto flowed through Binance to Iran-linked wallets, prompting a federal investigation into whether the exchange used to evade US sanctions and fund militant groups. The flow of funds occurred while the exchange was under the oversight of two independent compliance monitors reporting to the Department of Justice and the Treasury's Financial Crimes Enforcement Network (FinCEN).

Related Brief18h ago
crypto exchange safety

Binance Holds $1 Billion in SAFU Fund and 102% Bitcoin Reserves — Here’s How Indian Investors Can Verify Crypto Exchange Safety

Binance holds over 102% of Bitcoin reserves needed to cover user balances and maintains a $1 billion emergency fund for users. These figures, revealed in monthly proof of reserves reports, indicate the exchange holds more Bitcoin than necessary to cover user balances. As India becomes one of the world’s largest crypto markets, investors must verify such metrics before depositing funds. Proof of reserves (PoR), a cryptographic method allowing users to confirm their balances are accounted for without exposing others’ data, is a key standard separating credible platforms from unsafe ones. Binance also reports over 29 independent security certifications and prevented $6.69 billion in potential fraud losses in 2025. The exchange is registered with India’s Financial Intelligence Unit (FIU-IND) and holds licenses in 20 jurisdictions. Investors are advised to verify proof of reserves, security controls, regulatory status, and user protection track records before choosing a platform.

Sen. Richard Blumenthal (D-Conn.) sent letters on Friday to the DOJ and Treasury demanding answers by April 24 regarding the status and effectiveness of these monitors. Blumenthal cited "dangerously lax anti-money laundering prevention" and requested records on whether the monitors had filed any misconduct reports.

Related Brief2d ago
cryptocurrency

CZ’s prison memoir reveals the fragility of crypto empire-building under U.S. regulatory siege

Changpeng Zhao wrote his memoir 'Freedom of Money' while incarcerated in a U.S. federal prison. The book was composed in 15-minute terminal sessions without copy-paste functionality. Zhao describes real-time unraveling of Sam Bankman-Fried’s credibility during a last-minute plea for a $1B+ loan. Zhao refused the loan after detecting incoherence in Bankman-Fried’s financial requests. FTX collapsed shortly thereafter, resulting in $8 billion in missing customer funds. Zhao later faced U.S. federal charges leading to his own incarceration. He received a pardon from President Donald Trump. Zhao remains Binance’s largest shareholder despite stepping down as CEO. Binance operates under ongoing scrutiny from U.S. regulators. The crypto market has grown to a $3 trillion industry amid institutional adoption. Zhao positions himself as a thought leader advocating for decentralized financial systems.

The monitorship was part of a $4.3 billion settlement in November 2023, after Binance pleaded guilty to breaching sanctions and failing to register as a money transmitting business. Frances McLeod and Sharon Cohen Levin were appointed as monitors in monitorship began in 2024.

Related Brief23h ago
stablecoins

A new liquidity layer bypasses Asia’s fragmented banking system to enable instant USDT settlements

High-volume transactions across Asia can now settle instantly in USDT without touching the region’s traditional banking system. The shift comes through a new liquidity layer built by Stables in partnership with Mansa, designed to bypass the fact that only 1% of local banks in a region handling 60% of global stablecoin flows support the technology. The gap has long constrained fintechs and developers across 150 local currencies. Mansa supplies the short-term liquidity that keeps Stables’ fiat-USDT corridors active, drawing on its track record of processing $394 million across more than 40 currency pairs since August 2024. Stables routes over $1.5 billion in annualized payment volume through a single API that bundles compliance, banking, and settlement—fully managing identity verification, sanctions screening, and travel rule obligations. The firm is licensed in Australia, Europe, and Canada. The partnership enables seamless cross-border value transfer in a region where banking fragmentation has until now forced reliance on slow or incomplete rails.

Internal investigators at Binance reportedly warned top executives about the Iran-linked flows. Binance subsequently fired at least five of those investigators in late 2025. The exchange has denied that the firings were unrelated to their findings and maintains that it runs a rigorous compliance program.

Related Brief1d ago
cryptocurrency

Binance integrates messaging to reduce peer-to-peer crypto transfer friction

Peer-to-peer crypto interactions now have a reduction in friction. Users no longer need to switch between messaging and wallet interfaces to move assets. This is the result of Binance Chat, launched on April 15, 2026, which merges communication and the transfer of crypto, Trade Cards, and Red Packets directly within conversations. The tool is designed to eliminate the fragmentation that occurs when users discover ideas, discuss them, and complete transactions across separate services.

Blumenthal's inquiry comes as the DOJ has paused corporate monitorships as part of an informal review, having already ended monitorships for Glencore and Boeing. Bloomberg reported in 2025 that Binance was close to a deal with the DOJ to drop its compliance officer ahead of schedule.

Related Brief1d ago
regulatory compliance

Cryptoasset rules set for October 2027 will require UK-targeted offshore firms to comply or exit

Firms that serve UK consumers with cryptoasset services will have to comply with new regulatory rules by October 2027 or exit the market. The Financial Conduct Authority’s latest consultation clarifies that offshore companies engaging in activities like stablecoin issuance, crypto trading platform operations, custody, and staking must fall within the UK’s regulatory perimeter if they involve UK-based users. The normal Overseas Persons Exclusion, which typically shields non-UK firms from domestic rules, does not apply to these activities. Even firms dealing with UK institutions must assess whether their operations are deemed to be in the UK. The regime, which takes effect in October 2027, will require applications by 30 September 2026, with final rules expected shortly before then. The FCA has already begun a pre-application support service to guide potential applicants. Entities not compliant by the deadline will no longer be able to legally offer these services to UK retail investors.

Sen. Blumenthal requested documents and records regarding the monitor's current status and any misconduct reports filed by them.

Related Brief1d ago
stablecoins

USD Coin dominates 42% of trading on Coinone as Circle eyes South Korea without launching a won-pegged stablecoin

USD Coin accounts for 42% of daily trading volume on Coinone, one of South Korea’s major crypto exchanges, as Circle capitalizes on surging demand without launching a won-pegged stablecoin. Circle CEO Jeremy Allaire confirmed the company has no plans to issue a South Korean won-pegged digital currency, sidestepping a regulatory standoff between lawmakers and the Bank of Korea. The central bank and domestic banks oppose allowing tech firms to issue stablecoins, insisting the power belong solely to financial institutions. President Lee Jae-myung campaigned on introducing won-pegged stablecoins, but his administration has been stymied since taking office in June. Allaire, during a visit to Seoul, met with banking executives and crypto leaders, including Coinone, to pitch Circle’s infrastructure as a platform for licensed South Korean entities to issue their own stablecoins. The firm is pursuing a model similar to its expansions in Hong Kong, Singapore, Japan, and Europe—waiting for legal clarity, then seeking a license. For now, Circle’s monetization strategy in South Korea hinges not on launching a new coin, but on the growing use of USD Coin as both a trading pair and investment vehicle.

Binancestablecoin US legislationcrypto IRS rulingcrypto money laundering enforcement

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