How did hackers drain $6.3 billion from Binance in about 20 minutes (3:39)
Sen. Richard Blumenthal (D-Conn.) has told Binance, Tether and two crypto ventures tied to President Donald Trump to start handing over records by Nov. 30 and finish by Jan. 4, or face what he calls “alternative measures.”
Blumenthal shared the letters on Nov. 5, two days after midterm elections gave his party control of Congress. Each company was also told to confirm receipt by Nov. 9.
For now, the requests are voluntary.
Blumenthal is the top Democrat on the Senate Permanent Subcommittee on Investigations, which Sen. Ron Johnson (R-Wis.) chairs. Incoming chairs gain subpoena authority, the power to legally compel documents, when the new Congress convenes in January next year.
Blumenthal, a Connecticut senator since 2011, is no stranger to taking on corporations. He was a federal prosecutor as U.S. attorney and spent 20 years as the state’s attorney general before joining the Senate.
As the top Democrat on the investigations panel, he has been pressing the Trump-linked crypto ventures for records since May 2025, and he has since widened his inquiries to Binance and Tether.
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Binance: the Iran question
Blumenthal opened his Binance inquiry in February, after reports that compliance staff had traced $1.7 billion in transfers to Iranian entities through two partners. His letter says the exchange has produced no records.
The Senate is not alone.
In September, the Justice Department sought forfeiture of $61 million it says was laundered through Binance accounts. Forfeiture targets the money itself. Days later, Bloomberg reported that prosecutors were examining whether Binance knowingly allowed trading that violated Iran sanctions.
Binance said it has zero tolerance for sanctions violations and cooperates with law enforcement. The exchange pleaded guilty to breaking U.S. anti-money laundering laws in 2023 as part of a $4.3 billion settlement.
A timeline of the probe. Credits: Adam Barodawala
Tether: two lines of inquiry
A September report by Blumenthal’s Democratic staff examined 846 wallets sanctioned in connection with Iran and found that 84% of those wallets transacted in USDT.
Tether issues USDT, the largest dollar-backed stablecoin, a crypto token designed to hold a steady $1 value.
Tether responded that it helped freeze nearly $550 million in Iran-linked USDT this year and that the token is no haven for sanctioned actors.
The second line concerns influence.
Citing The Wall Street Journal, Blumenthal’s October letter says more than $6 million flowed from Tether to Nxum, a consulting firm partly owned by Bo Hines while he worked on stablecoin legislation at the White House. Hines now runs Tether’s U.S. business and is named in the latest letter.
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The Trump-linked ventures
Blumenthal has sought the ownership, foreign investment and conflict-of-interest records of World Liberty Financial and Fight Fight Fight LLC since May 2025. His letters say neither company has produced any.
World Liberty Financial issues the USD1 stablecoin and the WLFI token. Fight Fight Fight LLC launched the $TRUMP memecoin, a token whose value is driven mainly by demand and speculation.
The sharpest question involves a reported $500 million purchase of a 49% stake in World Liberty by investors including UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan. CNBC reported that the January 2025 deal directed $263 million to Trump family entities, citing his financial disclosure.
When recently asked on 60 Minutes why that arrangement differed from one he would criticize in the Biden family, Trump confirmed he co-owns the company but replied, “Because I know nothing about it.” He added that his sons run the business.
Why Jan. 4 matters
The Jan. 4 deadline turns a long-running paper chase into a test.
Companies that once ignored a minority senator now have to weigh how they will respond to a chairman with stronger tools.
However, none of these letters is a finding of wrongdoing.
The next marker is Nov. 30, when the companies are due to begin producing records.
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