Senator Richard Blumenthal has issued a formal request for documentation to Binance and Tether, setting a deadline of January 4, 2027. The inquiry focuses on allegations regarding the illicit use of their platforms, including potential transactions linked to Iran and Russia. For Binance, the investigation centers on approximately $1.7 billion in transfers, while Tether faces questions about the use of its USDT stablecoin in Iranian financial networks and payments to a consulting firm.
The senator also targeted World Liberty Financial and Fight Fight Fight LLC, a venture associated with the TRUMP memecoin. These entities face a more immediate deadline, with a requirement to begin document production by November 30, 2026. The probe into these firms examines potential conflicts of interest and foreign investments connected to crypto ventures linked to the current administration.
Blumenthal, who is positioned to chair the Senate Permanent Subcommittee on Investigations following recent midterm election results, indicated that failure to comply could lead to alternative measures, including the issuance of subpoenas. While the investigation is ongoing, market analysts have observed minimal impact on the prices of major cryptocurrencies to date.
