U.S. Senators Investigate CEX for Alleged Transfer of $1.7 Billion to Iranian Entities

On February 25, according to CoinDesk, Richard Blumenthal, the Democratic leader of the U.S. Senate Homeland Security Committee, has launched an investigation into allegations that CEX violated sanctions. Richard Blumenthal has sent a letter to CEX, inquiring about the transfer of $1.7 billion to entities linked to Iran. He has requested transaction records related to the entities involved in the suspected fund transfers and also asked for records of compliance personnel who were suspended or dismissed earlier. U.S. investigators have identified two entities involved in transferring funds to Iran. A CEX spokesperson stated in response that the earlier report by The New York Times was inaccurate. CEX has strict KYC and compliance procedures, and there are no Iranian users on the platform. The spokesperson reiterated that the reports by The New York Times, The Wall Street Journal, and Fortune about four investigators being dismissed are false. Yesterday, CEX co-CEO Richard Teng posted on social media, saying, “Recently, there have been false reports regarding CEX’s compliance program. The Wall Street Journal published defamatory statements, and despite our efforts to clarify the facts, the journalist has not responded to any of our corrections. CEX has sent an attached letter demanding an immediate correction and full retraction of these false statements.”