- Prosecutors seek $61 million in crypto tied to a $1.5 billion illicit Iranian oil network.
- The DOJ said Hong Kong firms used Binance accounts to handle Iranian oil funds.
- Blockchain analysis linked addresses via transaction patterns and token flows.
US prosecutors want to seize about $61 million in crypto they say is linked to a much bigger network that moved more than $1.5 billion from illegal Iranian oil sales.
According to the US Department of Justice, the operation involved two Hong Kong-based companies, Blessed Trust and Hexa Whale, which allegedly used Binance crypto trading accounts to handle money from Iranian oil and petroleum sales. Prosecutors say the funds ultimately went to the Iranian government, Iran’s Islamic Revolutionary Guard Corps (IRGC), and related groups.
How the $1.5 Billion Was Moved
Reportedly, the scheme started with Iranian oil being sold to buyers in China. The DOJ stated that Iranian players often use shell companies, middlemen, and a shadow fleet to move sanctioned oil by using fake paperwork and doctored shipping records to hide the origin of the crude.
The proceeds then entered a network of cryptocurrency companies and wallets. Blessed Trust supposedly provided on-ramp services, converting fiat currency into cryptocurrency, while Hexa Whale presumably performed similar functions while presenting itself as a commodities broker.
Investigators found at least seven linked, self-custodied crypto addresses, grouped as “Entity A.” Those wallets reportedly took in and sent out more than $1.5 billion tied to Iranian oil money.
Blockchain analysis was key to connecting the addresses, as the legal complaint says investigators looked at transaction patterns and when each address was first activated. Additionally, investigators examined the movement of USDT and TRX.
The on-chain trail apparently led investigators further into Iran’s financial system. Wallets linked to Entity A sent large amounts of crypto to Nobitex, an Iranian exchange, and to money transmitters that prosecutors say were known IRGC fronts.
Investigators also found ties to regular banking, with “Company-1” reputedly sending $37.15 million to Hexa Whale in 11 wire transfers in 2024, plus another $443.49 million to Blessed Trust in 32 transactions between November 2024 and March 2025. Those payments went through a US correspondent bank.
Why Is the US Targeting Only $61 Million?
The $1.5 billion is the total amount prosecutors say moved through the wider Entity A network, but the forfeiture complaint targets the USDT that investigators could trace to 10 specific TRON wallets.
When those wallets were frozen, they held about 61.19 million USDT combined. Tether had already locked the funds, and a federal seizure warrant let the FBI move them into a wallet the bureau controls.
As for the wallets themselves, their funds flowed through the larger network. One, for instance, received roughly $2 million straight from an Entity A address, while a few others were funded through intermediary addresses coming from another Entity A wallet.
So, this shows that authorities don’t have to seize everything, but can go after specific assets they claim are traceable proceeds of illegal activity, as long as they can establish a solid legal link.
The DOJ itself, while filing a civil forfeiture complaint, pointed out that the claims haven’t been proven until a court actually awards the forfeiture.
Related: Trump Says Iran Wants a Deal: What Could It Mean for Oil, Markets and Bitcoin?
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