Gate News message, April 17 — Democratic senators are aggressively questioning the Trump administration’s oversight of a major centralized exchange regarding anti-money laundering (AML) controls, amid reports that over $1.7 billion in cryptocurrency flowed through the platform to Iran-linked wallets. The scrutiny comes as the administration faces criticism for a separate settlement with a Turkish state-owned bank accused of helping Iran evade sanctions.
On Friday, Senator Richard Blumenthal (D-Conn.) sent urgent letters to the Department of Justice (DOJ) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) demanding answers about two independent monitors assigned to the exchange following a 2023 settlement. The company paid $4.3 billion in fines for failing to maintain proper AML controls. Blumenthal alleged that the exchange took two months to respond to law enforcement inquiries about terrorist financing and five months to remove a suspicious vendor. Internal data reportedly showed risky accounts labeled with “Don’t block. Internal accounts.” The senator is also demanding information on whether the exchange weakened its compliance policies since 2025, particularly regarding accounts tied to Iran.
Separately, Senators Blumenthal, Chuck Schumer, and Adam Schiff are questioning the DOJ’s decision to grant a deferred prosecution agreement to Turkiye Halk Bankasi (Halkbank), a Turkish state-owned bank accused of helping Iran access a $20 billion slush fund. Under the agreement, the bank will pay zero fines, admit no wrongdoing, and provide no compensation to U.S. victims of Iranian terrorism. The senators questioned whether President Trump pressured the DOJ to protect the bank, noting that Turkish President Recep Tayyip Erdogan reportedly assured his circle after a September 2025 White House visit that “the Halkbank problem is over for us.” Senator Ron Wyden called the decision “nothing short of rank incompetence” given the administration’s concurrent military engagement with Iran.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
French Finance Minister Calls for Expanded Use of Euro-Pegged Stablecoins
French Finance Minister Roland Lescure urged for greater use of euro-pegged stablecoins and active involvement from European banks to enhance competitiveness in the digital asset market, highlighting the need for deposit tokens to bridge traditional finance and blockchain technology.
GateNews1h ago
SEC Chair Paul Atkins Launches Official Podcast, Signals Pro-Innovation Crypto Stance
SEC Chair Paul Atkins launched his podcast "Material Matters," featuring Commissioners Hester Peirce and Mark Uyeda. They discussed a pro-innovation regulatory approach, criticizing past leadership and advocating for an open regulatory environment for digital assets.
GateNews7h ago
China to Strengthen Legislative Framework for AI, Digital Economy, and Blockchain
China plans to enhance its network legal system to address the needs of internet development, focusing on legislation for AI, digital economy, and other tech sectors. By December 2025, over 180 laws are expected, though current regulations still lag behind public expectations.
GateNews8h ago
U.S. Senator Blumenthal Pressures DOJ and Treasury Over Major CEX's Iran-Related Fund Flows
U.S. Senator Richard Blumenthal has requested clarification from the DOJ and FinCEN regarding compliance monitors for a major cryptocurrency exchange, amid concerns over compliance failures linked to substantial funds associated with Iran.
GateNews9h ago
South Korea Lawmaker Urges Priority for Stablecoin Legislation to Avoid Equity Regulation Delays
Kim Sang-hun, chairman of the Democratic Party's Digital Asset Special Committee, urged for prompt legislation on stablecoins to maintain monetary sovereignty and provide market clarity, while avoiding equity disputes that could hinder progress.
GateNews11h ago
Hong Kong Suspends Basketball Betting Project Amid Concerns Over Prediction Markets and Illegal Gambling
Hong Kong's government has suspended its basketball betting project due to concerns over the rapid growth of prediction markets linked to illegal gambling. With monthly trading volumes rising dramatically, authorities aim to enhance public education and collaborate on measures against gambling.
GateNews12h ago
