In brief U.S. prosecutors are seeking forfeiture of approximately $61 million in cryptocurrency. A related wallet network allegedly handled more than $1.5 billion in Iranian oil proceeds. The civil complaint’s allegations remain unproven. Federal prosecutors are seeking forfeiture of approximately $61 million in cryptocurrency allegedly linked to black-market Iranian oil sales, targeting funds they say were intended to finance Iran’s…
In brief
U.S. prosecutors are seeking forfeiture of approximately $61 million in cryptocurrency.
A related wallet network allegedly handled more than $1.5 billion in Iranian oil proceeds.
The civil complaint’s allegations remain unproven.
Federal prosecutors are seeking forfeiture of approximately $61 million in cryptocurrency allegedly linked to black-market Iranian oil sales, targeting funds they say were intended to finance Iran’s government and military.
The civil forfeiture complaint announced Monday alleges that Chinese companies Blessed Trust and Hexa Whale used Binance trading accounts to launder proceeds benefiting Iranian entities, including the Islamic Revolutionary Guard Corps, a U.S.-designated terrorist organization.
“As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC,” Deputy U.S. Attorney Sean S. Buckley said in a statement.
Blessed Trust allegedly presented itself as a wealth management or crypto custody business while converting Iranian oil payments from conventional currency into cryptocurrency. Hexa Whale, which described itself as a commodities broker, allegedly provided similar services.
Prosecutors say the companies helped route payments through interconnected wallets identified as “Entity A,” which received and distributed more than $1.5 billion in oil proceeds. The wallets allegedly sent funds to IRGC-linked businesses, cryptocurrency addresses, and an Iranian exchange.
That alleged transaction volume is separate from the approximately $61 million targeted for forfeiture.
“By cutting off funds raised by the black-market sale of crude oil, the Iranian military and terrorists are weakened,” FBI Assistant Director in Charge James C. Barnacle, Jr. said.
Both companies appeared in a Senate inquiry into alleged Iran-linked Binance transfers. Senator Richard Blumenthal requested records involving the firms in February following reports of alleged sanctions violations. Binance denied wrongdoing in connection with those earlier reports.
That followed July sanctions that prompted Tether to freeze more than $131 million across four Tron wallets. The DOJ announcement does not establish whether those funds overlap with the assets targeted in Monday’s complaint.
Civil forfeiture allows the government to seek ownership of property allegedly connected to crime. The complaint does not represent a completed forfeiture, and its allegations remain unproven until a court enters judgment in the government’s favor.
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