DOJ Pursues $61M in Iranian Oil Funds Laundered via Binance

On Monday, the U.S. Department of Justice announced it is actively seizing and pursuing the forfeiture of $61 million in digital assets that investigators contend originated from unauthorized, black-market sales of sanctioned Iranian oil.

This specific amount represents only a portion of the massive scheme outlined by prosecutors in the civil forfeiture complaint. Court documents reveal that a network of self-custodied wallets accepted and dispersed more than $1.5 billion in oil revenue, directing capital toward businesses connected to the Islamic Revolutionary Guard Corps, various digital asset addresses, and an Iranian exchange. Specifically, two China-based entities—Blessed Trust and Hexa Whale—are accused of employing trading accounts on Binance to launder these funds and channel them directly to the Iranian state and its affiliates.

This enforcement action follows broader U.S. efforts to halt Iran’s utilization of leading digital currencies. In July, Washington reported freezing digital assets tied to the Iranian regime—primarily consisting of Tether’s stablecoin—while Iran launched a bitcoin-backed insurance program earlier in the year for its national shipping fleets.

Monday’s legal filing did not reference bitcoin directly, though the Iranian government has also leaned on bitcoin to evade international sanctions. Because bitcoin lacks a central issuer and features no built-in blacklist mechanism, holdings kept independently without intermediaries cannot be frozen.

“The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads,” Deputy U.S. Attorney Sean S. Buckley stated publicly.

“As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC.”

According to the court filing, the unlawful oil proceeds were cleaned through the operations of Chinese corporations Blessed Trust Limited and Hexa Whale Trading Limited.

Federal authorities noted that once the funds were successfully laundered, they were redirected back to the Iranian administration, its operatives, and its regional proxies.

Previously, in July, the U.S. Treasury’s Office of Foreign Assets Control stated that Iran had bypassed trade restrictions by accepting bitcoin payments from vessels navigating the Strait of Hormuz.

At that time, OFAC reported that Hormuz Safe—a platform created by Iran’s Ministry of Economy—“accepts payment in bitcoin and other digital assets” to circumvent international penalties.

Additionally, a report from the Financial Times last week indicated that the Middle Eastern nation has utilized bitcoin to complete cross-border payments via Iranian digital asset exchanges, following a directive from the central bank urging citizens to take any steps necessary to support the national economy.

What is the DOJ seeking to seize in the Binance case?

The U.S. Department of Justice is seeking to seize and forfeit $61 million in cryptocurrency allegedly tied to black-market sales of sanctioned Iranian oil.

How much total money was involved in the broader laundering scheme?

Prosecutors state that a network of self-custodied wallets handled more than $1.5 billion in oil proceeds.

Which companies are accused of laundering the illicit funds?

Two China-based firms, Blessed Trust Limited and Hexa Whale Trading Limited, are accused of using Binance trading accounts to launder the money.

How is Iran using cryptocurrency to bypass sanctions?

Iran has accepted bitcoin payments for ships passing through the Strait of Hormuz via platforms like Hormuz Safe and settled cross-border transactions through domestic exchanges.

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