The US Justice Department has initiated a civil forfeiture action targeting more than $61 million in cryptocurrency allegedly connected to Iran’s black-market oil operations. Prosecutors assert that the proceeds were funneled through digital assets to finance Iran’s military and support terrorist activities.
DOJ Targets Crypto Tied to Sanctioned Oil Network
According to the complaint, Iran leveraged sanctioned crude oil sales to generate revenue outside conventional banking channels. Authorities allege a broader cryptocurrency network facilitated the movement of proceeds from these transactions. The Justice Department claims that crypto actors in China and other jurisdictions laundered over $1.5 billion from illicit Iranian oil sales, channeling funds toward Iran, its agents, and proxies.
FBI officials stated the investigation traced money flows linked to sanctions evasion and suspected terrorist financing. This filing adds to a series of recent US legal actions against Iran-related financial networks.
Binance Accounts Central to Laundering Allegations
Prosecutors identified two Chinese companies—Blessed Trust and Hexa Whale—in the complaint, alleging both used Binance trading accounts to process proceeds from black-market Iranian oil sales. Blessed Trust is described as a wealth management or virtual asset custodian entity that also handled transfers and provided fiat-to-crypto on-ramp services. Hexa Whale allegedly offered similar services and collaborated with Blessed Trust and related entities. Authorities further claim both companies sent or received tens of millions of dollars through the US financial system.
Binance responded, stating 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.
Tether Tokens to Be Replaced in Forfeiture Process
The complaint notes that Tether Ltd will burn tokens held in the targeted addresses and issue replacement tokens of equal value for transfer into US government custody. The filing also indicates Blessed Trust and Hexa Whale served clients in China’s petroleum and petroleum-products sector. CNBC reported 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, taking more than 80% of Iran’s shipped oil, averaging about 1.4 million barrels per day.
Conclusion
The Justice Department’s $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.