US Seeks $61M in Crypto Linked to Iranian Oil Sales

The U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint on Sept. 14 seeking $61 million in cryptocurrency connected to trading accounts and illicit Iranian oil sales. The complaint identifies two China-based firms, Blessed Trust and Hexa Whale, as linked to the accounts through which funds moved before reaching entities tied to Iran’s Islamic Revolutionary Guard Corps (IRGC).

Prosecutors say a network of wallets the filing calls Entity A moved more than $1.5 billion in proceeds from illicit Iranian oil sales. The complaint alleges the network routed funds through trading accounts held by Blessed Trust and Hexa Whale, sent value to IRGC-linked services and transmitted assets to an Iranian exchange. The action targets the cryptocurrency and the named firms; it does not name Binance as a defendant.

In the announcement accompanying the complaint, Deputy U.S. Attorney Sean Buckley wrote: “Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere.” The filing repeats allegations that transaction chains were used to conceal ultimate recipients and to convert oil sale proceeds into cryptocurrency to move value across borders.

Binance has previously denied that funds on its platform directly touched Iranian entities. In March, Binance co‑CEO Richard Teng described similar allegations as “false and defamatory” and said the company had cooperated with inquiries and maintained compliance systems. The current civil complaint asserts that accounts linked to Blessed Trust and Hexa Whale used Binance trading accounts as part of the flow of funds.

The complaint arrives ahead of a Sept. 30 window for applications under the United Kingdom’s new crypto licensing framework, where Binance is expected to seek authorization from the Financial Conduct Authority. The UK process emphasizes governance and compliance standards and will consider material presented during the application review.

The forfeiture action follows prior enforcement involving the exchange. In 2023, Binance pleaded guilty to certain sanctions violations and paid a $4.3 billion penalty to resolve related U.S. investigations. Earlier authorities also identified other Iran-linked entities that moved large sums through trading venues, including transfers from an Iran-linked exchange previously fined by regulators in another jurisdiction.

The Southern District’s complaint mirrors findings in a Senate review earlier this year that named the same two firms now listed in the civil action. The government seeks to recover the $61 million in cryptocurrency tied to the named accounts and to interrupt the alleged laundering pathway that directed oil revenue to designated Iranian entities.