Article Details

Why All Eyes Are on Binance Again? A US Senator is Pushing for a New Investigation

TL;DR

• Elizabeth Warren and two Democratic senators asked the DOJ to confirm whether Binance is complying with the $4.3B settlement signed in 2023.
• The deal included an independent compliance monitor, but prosecutors are considering removing it, raising questions about oversight.
• The senators also requested information on Binance’s ties to World Liberty Financial, a firm linked to the Trump family.

Senator Elizabeth Warren has once again put Binance under pressure, demanding that the U.S. Department of Justice confirm whether the company is honoring the settlement reached in 2023 over money laundering and international sanctions violations.

The Massachusetts lawmaker, joined by Democratic senators Mazie K. Hirono and Richard Blumenthal, sent a letter on September 17 to Attorney General Pam Bondi seeking details on Binance’s compliance status and possible ties between the company and officials from the Trump administration.

External Monitors Could Be Removed

The settlement with the federal government, signed in late 2023, required Binance to pay $4.3 billion and accept other penalties, including the appointment of an independent monitor to oversee its compliance systems. The Department of Justice recently noted that the company has already paid all fines due but still has “ongoing obligations,” such as strengthening its compliance programs. The senators argue that this response is insufficient since it does not clarify whether the exchange is actually meeting those requirements.

Reports suggest that prosecutors are weighing whether to release Binance from the monitor’s supervision, a move that would cast doubt on the continuity of oversight mechanisms. In their letter, the lawmakers stressed that the DOJ “did not respond meaningfully” to inquiries Warren had submitted back in May, which they say are critical to determining whether the company remains aligned with the terms of the deal.

Investigating Binance’s Links to WLFI

The senators are also seeking information about the relationship between Binance and World Liberty Financial, a firm tied to the Trump family. This adds a political dimension to the probe, as it could point to a network of influence surrounding the world’s largest cryptocurrency exchange.

Binance remains in constant tension with U.S. authorities. Although the company has paid the record fine, the lack of clarity over its remaining obligations and the potential lifting of external supervision continue to fuel concerns in some sectors of U.S. politics