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U.S. Moves to Seize $61 Million in Crypto Tied to Iranian Oil

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Federal prosecutors in New York filed a civil forfeiture claim over $61 million in cryptocurrency, alleging it stems from black-market Iranian oil sold to China. "binance exchange"

Federal prosecutors in New York are moving to take control of $61 million in cryptocurrency they say came from illegal sales of sanctioned Iranian crude oil and refined petroleum. The U.S. Attorney's Office for the Southern District of New York filed a civil forfeiture complaint arguing the digital funds trace back to a laundering operation that ultimately served Iran's government and armed forces.

According to the complaint, Tehran leaned on a web of cryptocurrency operators based in China and other countries to move more than $1.5 billion in oil revenue through concealed channels. Prosecutors say the money was earmarked for the Iranian government, its military and the Islamic Revolutionary Guard Corps.

"Today we are seizing and seeking to forfeit more than $61 million of the Government of Iran's money, which otherwise would have promoted hostile military action and terrorist attacks against the U.S. and our allies," Deputy U.S. Attorney Sean S. Buckley said in a statement.

Two Chinese firms named

The filing identifies two Chinese companies, Blessed Trust and Hexa Whale, as central to the scheme. Prosecutors say the pair held trading accounts on the Binance exchange and used them to wash the proceeds of black-market oil deals, steering the cash toward Iran's government, its agents and its proxies to bankroll militant and other state activity.

Blessed Trust presents itself as a wealth-management and virtual-asset custody business, the complaint says. In practice, prosecutors allege, it took in and passed along the tainted money while running "on-ramp" services that let clients swap traditional currency for digital tokens. Some of those conversions ran through cryptocurrency issuers based in the United States. Hexa Whale offered comparable services and worked alongside Blessed Trust and its associates. The complaint states that both firms tapped the American financial system to move tens of millions of dollars as part of the operation. Clients of the two companies include businesses operating in China's petroleum sector.

A Binance spokesperson said the exchange rejects any involvement in sanctions breaches. "Binance has zero tolerance for sanctions violations or illicit activity, and Binance did not permit any transactions with sanctioned individuals," the spokesperson said, adding that the company would keep assisting investigators and would restrict, freeze or close accounts and file reports to authorities when it spots sanctions or illicit-finance risks.

Hexa Whale and Blessed Trust could not be reached for comment.

Tether to swap the tokens

To hand the assets over to the government, Tether Ltd. plans to destroy the tokens sitting in the targeted wallet addresses and mint fresh tokens of equal value, which will then pass into U.S. custody, according to the complaint. Tether did not immediately respond to a request for comment.

The action follows a broader push by Washington to choke off Iran's oil revenue. In April, U.S. officials imposed sanctions on a small independent Chinese refinery, known in the industry as a "teapot," and cautioned banks that they risk penalties for doing business with Chinese refiners that handle Iranian crude.

The pressure comes as China remains the dominant destination for Iran's oil exports. Reporting has pointed to China taking in more than 80% of Iran's shipped oil in 2025, averaging about 1.4 million barrels a day. A Sept. 10 account also described Iran using a barter-style setup to dodge sanctions on its oil, trading crude for billions of dollars in Chinese goods.

Iranian oil sanctions, crypto forfeiture, Binance, Tether, IRGC financing, cryptocurrency money laundering, Southern District of New York, Iran China oil trade

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