U.S. Crypto Firms Given Until January 4, 2027 to Voluntarily Turn Over Records
Key Facts
On November 5, 2026, Senator Richard Blumenthal’s office announced that it had sent letters seeking records and information from Binance, Tether, World Liberty Financial and Fight Fight Fight LLC, setting January 4, 2027 as the deadline for voluntary submission. The office said that if the materials were not provided by that date, the Senate Permanent Subcommittee on Investigations would consider alternative means of ensuring compliance. The letters place crypto trading and asset firms within overlapping oversight investigations, including the use of cryptocurrencies in illicit activities and companies’ ties to political officials. The office did not announce that a compulsory measure had already been taken; the warning concerns a possible step if the materials are not provided voluntarily. The statement described Blumenthal as the subcommittee’s incoming chairman, and said it is leading these investigations.
According to Blumenthal’s office, the investigation involving Binance and Tether concerns the illicit use of cryptocurrencies and what the office described as the Trump administration enriching itself and engaging in self-dealing with companies in the sector. The list of letter recipients also includes World Liberty Financial and Fight Fight Fight LLC; the office described the latter as linked to the $TRUMP coin. This scope places the records request in a broader context than a standalone investigation of Binance and Tether, bringing together questions about the use of crypto assets and companies’ ties to politics. The announcement did not detail the specific records requested from each entity or their responses. It also did not say whether the four companies had agreed to provide the materials before the deadline.
Against the backdrop of the investigation involving Tether, the office cited an earlier Blumenthal report on the dollar-linked stablecoin and its role in an Iranian shadow banking network. The report described the coin as “an important financial lever within Iran’s shadow banking network,” wording that reflects the report’s characterization cited by the office. In a report published by the committee’s Democratic staff on September 28, 2026, it said its analysis covered 846 wallets sanctioned for links to Iran and its proxies, and that 84% of them transacted exclusively or almost exclusively in USDT. The findings connect the committee’s interest in seeking information from Tether to the use of the coin in Iran-related transactions, according to the office’s account of the report. They do not amount to a final judgment on the company’s responsibility; the records request remains one step in the investigation.
The Binance track dates to February 24, 2026, when Blumenthal sought records concerning alleged transfers linked to Iranian entities and Russia’s sanctioned oil fleet, setting March 6, 2026 as the response deadline. His announcement cited media reports that said $1.7 billion in transfers reached Iranian entities in late 2025, and the investigation raised questions about the role of Binance partners; these are allegations attributed to the reports and the announcement. On April 1, 2026, Blumenthal said Binance’s response claimed that only $110,000 had been traded directly with four major Iranian exchanges during 2025. The office reported that figure as the company’s claim, not as an independent finding. The sequence shows that the new records request follows earlier correspondence focused on alleged transfers and the company’s responses.
Regarding USDT, Tether said in its announcement that it had supported the freezing of about $550 million in tokens linked to Iran through September 2026, in the context of its response to allegations concerning the freezing of Iranian assets. The figure is what the company said it helped freeze in cooperation with authorities, not an independent estimate by Blumenthal’s office. This response sits alongside the committee report on the use of USDT in wallets linked to Iran, with the two pieces of information differing in nature and source. The office also said Blumenthal opened an investigation in May 2025 into the $TRUMP coin and World Liberty Financial, following reports of potential ethical and financial concerns. In July 2026, he held a public forum on the Trump family’s cryptocurrency ventures and released statements from $TRUMP investors who said they had lost thousands of dollars, according to the office’s statement.
The next step hinges on January 4, 2027, the deadline Blumenthal set for the voluntary submission of materials. His office said that if the requested records and information were not provided by then, the committee would have the option of considering alternative means of obtaining compliance. The statement did not specify what those means might be or announce that a particular action had begun, nor did it provide a nearer timetable for confirming receipt or starting to submit documents. The warning therefore leaves the escalation decision to the committee after the deadline passes, while the current letters remain voluntary requests for information. According to the published list, the request covers the four entities named in the announcement.