US prosecutors seek forfeiture of $61M in crypto allegedly laundered through Binance by Chinese companies for Iranian oil proceeds.
Regulation & Gov ·
U.S. prosecutors announced a civil forfeiture action targeting approximately $61 million in cryptocurrency tied to alleged sanctions violations and money laundering. The complaint, filed Monday, names two Chinese entities—Blessed Trust and Hexa Whale—and alleges they operated Binance accounts to convert Iranian oil revenue into digital assets. According to federal prosecutors, the underlying scheme channeled over $1.5 billion in illicit oil proceeds intended to support Iran's government and military, including the Islamic Revolutionary Guard Corps, a designated terrorist organization.
The two companies reportedly presented themselves as financial service providers: one as a wealth management or custody platform, the other as a commodities broker. Investigators identified an interconnected wallet network receiving and distributing the alleged oil payments, with funds allegedly flowing to IRGC-affiliated businesses and Iranian exchanges. Both entities had previously appeared in a Senate inquiry into Iran-linked Binance transfers, and Senator Richard Blumenthal had requested records on them in February.
Civil forfeiture proceedings do not constitute a final determination of guilt or property ownership; allegations in the complaint remain unproven pending court judgment. The action reflects an ongoing U.S. effort to restrict Iran's access to cryptocurrency funding channels, which intensified in August when Treasury expanded sanctions authority over participants in Iran's digital asset markets. It remains unclear whether any of the targeted funds overlap with assets Tether froze in July across Tron wallets.