Treasury Demands Binance Employee Interviews, Records in Escalating Sanctions Probe

The U.S. Department of Treasury has sent a letter to Binance requesting employee interviews and internal records as part of an investigation into potential sanctions violations, according to sources familiar with the matter. The demand marks a new phase of scrutiny directed at the world's largest cryptocurrency exchange, which operates under a federal monitorship imposed nearly three years ago when it pleaded guilty to criminal charges related to sanctions and anti-money-laundering failures.

Binance Holdings Ltd. agreed to the monitorship as part of a landmark $4.3 billion settlement with the Justice Department in November 2023. The arrangement placed independent oversight of the exchange's compliance operations under Treasury's Financial Crimes Enforcement Network. The new letter signals that authorities are probing whether Binance has adequately prevented sanctions evasion during the monitoring period, raising questions about the effectiveness of the settlement's compliance framework.

The development intensifies pressure on an exchange already facing heightened regulatory attention globally. Treasury's request for employee testimony and documentation suggests investigators are building a detailed picture of potential violations rather than conducting a routine review. Binance has previously stated it invested heavily in compliance infrastructure following the 2023 settlement. Legal observers note that any finding of sanctions violations during the monitorship period could trigger additional penalties, modifications to the settlement terms, or renewed criminal exposure.