- DOJ seeks $61M in crypto allegedly tied to Iranian black-market oil sales.
- Prosecutors link Binance accounts to an alleged $1.5B Iranian oil network.
- Tether will replace targeted USDT, but forfeiture allegations remain unproven.
The U.S. Department of Justice is seeking forfeiture of approximately $61 million in cryptocurrency allegedly tied to Iranian black-market oil sales. Prosecutors say two Chinese companies used Binance accounts to move funds through a broader network that handled more than $1.5 billion in oil proceeds, bringing exchange accounts, stablecoins and self-custody wallets into the same sanctions investigation.
The civil complaint, filed on September 14 in Manhattan, seeks to seize assets prosecutors say were used to finance Iran’s government and military, including the Islamic Revolutionary Guard Corps.
Binance Accounts Form Part of the Alleged Route
Prosecutors identified Blessed Trust Limited and Hexa Whale Trading Limited as intermediaries that converted payments for Iranian petroleum into cryptocurrency.
Blessed Trust presented itself as a wealth management and digital-asset custody business, while Hexa Whale described itself as a commodities broker. Authorities allege both provided fiat-to-crypto conversion services for oil transactions involving Chinese buyers.
Those services allegedly connected Binance trading accounts with cryptocurrency issuers and other financial channels. Prosecutors also say the companies used the U.S. financial system to send or receive tens of millions of dollars.
The $1.5 Billion Network Extends Beyond the Targeted Funds
The approximately $61 million targeted for forfeiture represents only part of the alleged operation. Prosecutors say interconnected self-custody addresses, collectively labelled “Entity A,” received and distributed more than $1.5 billion in Iranian oil proceeds.
Those transfers allegedly reached IRGC-linked money services businesses, cryptocurrency addresses, and an Iranian exchange. The distinction separates the assets authorities seek to recover from the larger volume investigators attribute to the network.
USDT Recovery Highlights Issuer Control
The targeted assets include Tether’s USDT. According to the complaint, Tether will destroy tokens at the identified addresses and issue matching replacements to a government-controlled wallet.
That recovery mechanism connects the investigation to traders’ concerns about stablecoin controls and wallet tracing. However, claims that this case will lead to widespread freezes or tighter exchange screening remain predictions. The legal outcome also remains unresolved. A civil forfeiture complaint contains allegations, and the DOJ’s account does not constitute a final court finding.
Related: USDT Emerges as Venezuela’s Financial Social Network as Trading Hits $1.39B, Rivaling Oil
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