Summary
- Federal prosecutors are pursuing the forfeiture of around $61 million in cryptocurrency.
- A related network of wallets is said to have processed over $1.5 billion from Iranian oil sales.
- The claims in the civil complaint are currently unverified.
U.S. federal prosecutors are aiming to seize roughly $61 million in cryptocurrency that they allege is connected to illegal Iranian oil transactions, with claims that these funds were intended to support Iran's government and military operations.
The civil forfeiture complaint filed on Monday accuses Chinese companies Blessed Trust and Hexa Whale of using Binance trading accounts to launder funds that benefit Iranian entities, including the Islamic Revolutionary Guard Corps, which is designated as a terrorist organization by the U.S.
Myriad: Will Congress pass the Clarity Act? Click to make your prediction.Deputy U.S. Attorney Sean S. Buckley stated, "The complaint alleges that the Government of Iran utilized a network of cryptocurrency participants in China and other locations to launder over $1.5 billion in illicit oil revenues aimed at benefiting the Iranian military and the IRGC, which is designated as a terrorist organization."
Blessed Trust is said to have positioned itself as a wealth management or crypto custody service while converting payments for Iranian oil from traditional currency into cryptocurrency. Meanwhile, Hexa Whale, which claimed to be a commodities broker, allegedly provided similar functions.
According to prosecutors, these companies facilitated the routing of payments through interconnected wallets referred to as "Entity A," which reportedly received and distributed over $1.5 billion in oil revenues. The wallets are accused of transferring funds to businesses linked to the IRGC, various cryptocurrency addresses, and an Iranian exchange.
This alleged transaction volume is distinct from the approximately $61 million that is currently under consideration for forfeiture.
FBI Assistant Director in Charge James C. Barnacle, Jr. commented, "By cutting off funds generated from the black-market sale of crude oil, we weaken the Iranian military and terrorist organizations."
Both companies were mentioned in a Senate investigation regarding alleged Iran-related transfers involving Binance. Senator Richard Blumenthal requested documentation related to these firms in February after reports surfaced regarding potential sanctions violations. Binance has denied any wrongdoing associated with these earlier allegations.
The filing is part of a broader effort to curb Iran's cryptocurrency operations. In August, the Treasury Department expanded its authority to impose sanctions on individuals participating in Iran’s digital asset sector.
This followed sanctions imposed in July that led Tether to freeze over $131 million across four Tron wallets. The Department of Justice's announcement does not clarify whether those assets are linked to the funds mentioned in Monday’s complaint.
Civil forfeiture allows the government to claim ownership of property believed to be involved in criminal activity. The complaint does not equate to a completed forfeiture, and the allegations remain unverified until a court rules in favor of the government.