WASHINGTON — The U.S. Justice Department is seeking to seize more than US$61 million that prosecutors say originated from Iranian black-market oil sales and was moved through cryptocurrency accounts on Binance as part of a broader money-laundering operation.
In a civil forfeiture complaint filed Monday in Manhattan federal court, U.S. prosecutors alleged that more than US$1.5 billion in illicit Iranian oil proceeds was moved through cryptocurrency and traditional financial channels.
The case places renewed attention on how cryptocurrency networks can be used to move money across borders while also highlighting the increasingly aggressive U.S. effort to track financial flows linked to Iran.
DOJ targets $61 million in alleged Iranian proceeds
According to prosecutors, the government is seeking forfeiture of approximately $61 million in cryptocurrency allegedly connected to Iranian oil proceeds.
The Justice Department says the money was ultimately destined for Iran, its agents and proxies and alleges that some of the funds supported military and terrorist activities.
Manhattan Deputy U.S. Attorney Sean Buckley described the action as an effort to prevent Iranian funds from being used to support hostile activity against the United States and its allies.
The forfeiture action is a civil proceeding, meaning the government’s allegations have not themselves established criminal liability for every party mentioned in the complaint.
Two Chinese entities allegedly played a key role
U.S. prosecutors identified two Chinese entities — Blessed Trust Limited and Hexa Whale Trading Limited — as alleged participants in the scheme.
According to the DOJ allegations, Blessed Trust presented itself as a wealth-management company, while Hexa Whale described itself as a commodities broker.
Prosecutors say the entities used cryptocurrency trading accounts and parts of the U.S. financial system to move tens of millions of dollars connected to the broader Iranian oil operation.
The companies did not immediately respond to requests for comment, according to reports.
Binance says it cooperated with authorities
Despite the headline-grabbing connection to Binance, prosecutors did not accuse Binance of wrongdoing in the latest forfeiture complaint.
Binance said it does not permit transactions involving sanctioned individuals and said it cooperates with law enforcement.
The exchange also said that when sanctions or illicit-finance risks are identified, it can investigate, restrict or freeze accounts, remove users from its platform and report concerns to authorities.
Binance has said that both Blessed Trust and Hexa Whale had been removed from the platform before reports about their alleged activities emerged earlier this year.
The case follows earlier scrutiny of Binance
The latest action comes after years of intense regulatory scrutiny of Binance’s compliance systems.
In 2023, the U.S. Justice Department charged Binance with violating anti-money-laundering and sanctions laws. The company agreed to pay approximately $4.3 billion to resolve the U.S. investigation, while co-founder Changpeng Zhao pleaded guilty to violating U.S. banking laws and served a four-month prison sentence.
Earlier this year, reports citing an internal Binance investigation said more than $1 billion had moved through the exchange to Iranian entities allegedly linked to terrorist organizations.
Binance responded by emphasizing its cooperation with law enforcement and its compliance controls.
Iran’s oil trade faces growing financial pressure
The allegations come as Washington continues efforts to restrict Iran’s ability to generate and move revenue from oil exports.
Cryptocurrency can create additional challenges for authorities because digital assets can be transferred across borders rapidly and can involve multiple intermediaries and wallets.
That does not mean cryptocurrency transactions are inherently anonymous, however. Blockchain transactions can create permanent records that investigators can analyze, allowing law-enforcement agencies to trace funds when they have the necessary information and tools.
In this case, U.S. prosecutors say they were able to trace the alleged proceeds through a combination of cryptocurrency and traditional financial transactions.
Why the $1.5 billion figure matters
The distinction between the $61 million seizure effort and the more than $1.5 billion allegedly laundered is important.
The DOJ is seeking forfeiture of the $61 million identified in its civil complaint. The larger $1.5 billion figure refers to the amount prosecutors allege was laundered through the broader operation.
The two figures therefore should not be presented as if the United States has seized $1.5 billion.
A new test for crypto compliance
The case could have implications beyond Iran.
For cryptocurrency exchanges, the investigation highlights the continuing challenge of identifying customers and transactions connected to sanctioned jurisdictions and illicit financial networks.
For U.S. authorities, meanwhile, the action demonstrates a willingness to pursue alleged illicit proceeds even after they have been converted into digital assets and moved across international platforms.
The case is still unfolding, but one message is becoming increasingly clear: Washington is following the money — even when that money moves through cryptocurrency.
And with billions of dollars in alleged Iranian oil proceeds under scrutiny, the latest $61 million forfeiture action could be only one part of a much larger financial investigation.
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