Blumenthal Sets Jan. 4, 2027, Voluntary Deadline for Crypto Records
Key Facts
The office of U.S. Sen. Richard Blumenthal said on Nov. 5 that it had issued a warning to recipients of letters concerning ongoing investigations, including matters involving the illicit use of cryptocurrencies. It set Jan. 4, 2027, as a voluntary deadline to provide the requested records and information. The office said failure to provide them could prompt the committee to consider alternative measures to secure compliance. The entities that received the letters include Binance, Tether and Trump-related companies World Liberty Financial and Fight Fight Fight LLC. The deadline is part of separate investigations addressing concerns over cryptocurrency use and projects linked to the Trump family.
The office described the date as a voluntary deadline and said Blumenthal could consider "alternative measures" if the records and information were not provided by Jan. 4, 2027. The announcement did not specify the nature of those measures. The request concerns information and records related to the committee’s investigations, while the warning sets a date for their submission without announcing any specific enforcement action. That means the current step is a request for voluntary compliance, with the office to decide whether to pursue another course after the deadline. The announcement did not say that all four entities had failed to provide records.
In the case involving World Liberty Financial and Fight Fight Fight LLC, Blumenthal’s office said the investigation began in May 2025 after reports of possible links between Trump-connected crypto companies and ethical concerns, as well as foreign transactions and investments. The office said Blumenthal hosted a public forum in July 2026 on the Trump family’s cryptocurrency projects. During that forum, he published statements from $TRUMP investors who said they had lost thousands of dollars. According to the office’s description, this line of inquiry examines potential relationships and interests linked to those projects. The new letters place the two companies among the entities asked to provide records and information before the deadline.
Another line of inquiry concerns the illicit use of cryptocurrencies and the Trump administration’s financial ties and self-interest involving crypto companies, the senator’s office said. In the background to this matter, the office cited a summary of an investigation by the committee’s minority staff into wallets linked to Iran and its terrorist proxies. The summary said 84% of 846 wallets sanctioned for links to Iran and its proxies transacted exclusively or almost exclusively in USDT. The percentage reflects what investigators reported about the wallets’ activity and does not constitute a court ruling on Tether. The company’s inclusion among the letter recipients places the records request in the context of examining cryptocurrency use in transactions linked to sanctioned entities.
Blumenthal opened a preliminary investigation on Feb. 26, 2026, into the use of cryptocurrencies by sanctioned entities, following reports about Binance partners. On April 1, he said the company had not provided documents and information previously requested by the committee, and sought additional documents by April 14. He also requested the documents Binance relied on in its response, along with the records sought in his earlier letter. In a response dated March 6, 2026, Binance said its review found no direct transactions with entities located in Iran and described the reports underlying the investigation as inaccurate. The company added that its internal reviews of Hexa Whale and Blessed Trust predated any relevant press coverage, and that it removed them after those reviews.
Blumenthal’s office said Binance reported that the value of direct exchanges with four major Iranian platforms totaled $110,000 in the previous year. The committee’s letter requested a complete year-over-year comparison of transactions Binance sent to or received from Iranian platforms, along with the methodology used. Blumenthal said he was concerned the company may have misled the committee and the public, but presented that as a matter under review. He also asked the company to clarify whether it had loosened policies or mechanisms for monitoring suspicious transactions since Jan. 1, 2025. These requests remain part of the investigation into the company’s transactions and compliance measures, while the deadline for submitting the new records is Jan. 4, 2027.