The US Justice Department has filed a civil forfeiture complaint seeking more than USD 61 million in cryptocurrency allegedly tied to Iran’s black-market oil sales. Prosecutors say the proceeds helped finance Iran’s military and supported terrorist activity.
The complaint says Iran used sanctioned crude oil sales to raise funds outside normal financial channels. Authorities also allege a wider cryptocurrency network moved proceeds from those transactions.
According to the Justice Department, crypto actors in China and other locations laundered more than USD 1.5 billion from illicit Iranian oil sales. The department says the network moved funds toward Iran, its agents, and its proxies.
FBI officials said the case followed money flows connected to sanctions evasion and alleged terrorist financing. The filing adds to recent US legal actions involving Iran. How far can prosecutors trace crypto-linked oil proceeds across exchanges, issuers, and the wider financial system?
Prosecutors identified two Chinese companies, Blessed Trust and Hexa Whale, in the complaint. They allege both companies used Binance trading accounts to process proceeds from black-market Iranian oil sales.
The complaint describes Blessed Trust as a firm that presents itself as a wealth manager or virtual asset custodian. Prosecutors say it also handled transfers and provided fiat-to-crypto on-ramp services.
Authorities allege Hexa Whale offered similar services and worked with Blessed Trust and related entities. They also say both companies sent or received tens of millions of dollars through the US financial system.
Binance said it does not tolerate sanctions violations or illicit activity. The exchange said it investigates risks, restricts or freezes accounts when appropriate, removes users, and reports cases to authorities.
The complaint says Tether Ltd will burn tokens held in the targeted addresses. Tether will then issue replacement tokens of equal value for transfer into US government custody.
The filing also says Blessed Trust and Hexa Whale served clients in China’s petroleum and petroleum-products sector. CNBC reported that it could not reach either company for comment, while Tether had not responded.
Washington sanctioned a Chinese independent refinery in April and warned financial institutions about dealings with Chinese refineries processing Iranian oil. Reuters later reported that Iran used barter-like arrangements to buy billions of dollars in goods from China.
China ranked among the largest buyers of Iranian oil in 2025. According to the provided figures, it took more than 80% of Iran’s shipped oil, averaging about 1.4 million barrels per day.
The Justice Department’s USD 61 million forfeiture case centers on alleged crypto flows tied to sanctioned Iranian oil sales. Prosecutors say Blessed Trust and Hexa Whale used Binance accounts and the US financial system, while Tether’s token replacement process would place the targeted value under US government custody.