Cryptocurrency exchange Binance is once again facing mounting scrutiny in Washington, as lawmakers question whether the company is living up to the terms of its 2023 settlement with US authorities — an agreement that ultimately led to the resignation of its founder and former CEO, Changpeng Zhao (CZ).Democrats Urge DOJ And Treasury InvestigationOn Friday, journalist Eleanor Terrett of Crypto In America reported that eleven Democrats on the Senate Banking Committee, led by crypto-skeptic Elizabeth Warren, sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent urging their departments to examine Binance’s operations. The lawmakers pointed to recent media reports alleging illicit finance activity on the platform, including transactions reportedly linked to Iran, and warned that such conduct could place Binance in violation of its 2023 settlement.In their letter, the senators also referenced Binance’s expanding business relationships with President Donald Trump’s crypto ventures, as well as Trump’s pardon of Zhao. They called for what they described as a “thorough, impartial” investigation into whether the exchange is adhering to its legal obligations.The latest pressure follows a separate inquiry launched earlier in the week. As previously reported by Bitcoinist, Democratic Senator Richard Blumenthal initiated a formal probe through the Senate’s Permanent Subcommittee on Investigations. Binance Denies Sanctions Violations In a letter dated February 24 and addressed to Binance co-CEO Richard Teng, Blumenthal cited reporting that suggested the exchange may have facilitated “large-scale violations” of US and international sanctions on Iran.Blumenthal noted that Binance appeared to ignore warnings and recommendations aimed at reducing Iranian money laundering operations. He also referred to the same reports cited by the Senate banking committee Democrats, indicating that $1.7 billion in transactions to Iran may have passed through the platform.Binance has strongly denied the allegations. The company said it conducted an internal review and found “no evidence of violations of applicable sanctions laws.” The exchange also rejected claims that it had dismissed investigators for raising concerns related to sanctions compliance.Featured image from OpenArt, chart from TradingView.com