Binance CEO Richard Teng has clarified that the US Department of Justice (DOJ) is not investigating his exchange in a recent forfeiture action related to illicit Iranian oil sales. Federal prosecutors from the Southern District of New York are seeking to seize approximately $61 million in cryptocurrency allegedly linked to the Iranian regime’s black-market crude oil operations.
Binance not named as defendant in DOJ action
Teng directly addressed speculation on X, stating that Binance is not the subject of the DOJ action announced this week. He emphasized that the legal filing does not name Binance as a defendant or allege any wrongdoing by the company.
He wrote that the exchange enforces strict measures against sanctions violations and illicit activity, and does not permit transactions involving sanctioned individuals. Teng encouraged observers to review the court documents for confirmation.
“As Bloomberg’s article notes, this case was not filed against Binance and does not allege any wrongdoing by Binance,” Teng stated, reiterating the exchange’s stance of “zero tolerance for sanctions violations or illicit activity” and explaining that Binance “did not permit any transactions with sanctioned individuals.”
In this case, the complaint named Blessed Trust and Hexa Whale as entities accused of helping Iran convert oil sale proceeds into cryptocurrency. Prosecutors listed Binance in the court documents only as a transaction venue, not as a defendant.
Federal authorities are focusing on assets they claim are controlled by Blessed Trust, a custodial and wealth management firm, and Hexa Whale, which operates as a commodities broker. Both firms are accused of providing covert services to clients linked to the Iranian government. Reports indicate that their client base also includes Chinese oil companies.
Deputy US Attorney Sean S. Buckley and FBI Assistant Director in Charge James C. Barnacle, Jr. announced the civil forfeiture complaint, detailing efforts to seize digital assets stemming from Iranian oil sales.
The investigation follows $61 million in cryptocurrency believed to have been generated by illicit oil transactions.
Mini dictionary: Blessed Trust and Hexa Whale are financial intermediaries accused in the US complaint of helping the Iranian regime move and convert proceeds from oil sales into cryptocurrency. They are alleged to have bridged payments between Iranian entities and global counterparties, often using digital assets for cross-border transfers.
Broader network and illicit flows
The $61 million seizure represents only a fraction of the larger sums linked to Iranian oil activities. Investigators identified a cluster of self-custodied wallets referred to as “Entity A,” which have processed over $1.5 billion in proceeds from black-market oil sales.
These funds have, according to officials, been routed to money-services businesses associated with the Islamic Revolutionary Guard Corps (IRGC), IRGC-operated crypto wallets, and at least one Iranian crypto exchange. The US government has previously designated the IRGC as a terrorist organization.
Buckley explained that the Iranian government used a network of cryptocurrency actors based in China and elsewhere to launder this capital.
“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,” Buckley stated in the DOJ announcement.
Blockchain analytics firm Chainalysis estimated Iran’s crypto ecosystem exceeded $7.78 billion in transaction volume over the previous year. Reports suggest the IRGC was responsible for nearly half of this activity in late 2023, as the country increased reliance on cryptocurrencies to move oil revenues beyond international banking restrictions.
| Entity/Firm | Role | Amount Linked (USD) | Status in DOJ Action |
|---|---|---|---|
| Blessed Trust | Custodial/Wealth Management | Part of $61 million | Named/Targeted |
| Hexa Whale | Commodities Broker | Part of $61 million | Named/Targeted |
| Binance | Exchange Platform | Facilitated transfers as venue | Not Accused |
Historical links and compliance context
This is not the first time Binance’s name has surfaced in connection with Iranian crypto flows, though authorities have not charged the exchange. In August, a Reuters investigation indicated that sanctioned exchange Shelbit moved at least $4 billion over two years, with some transactions routed through Binance.
Data cited in the investigation showed $676 million flowed from Shelbit-related wallets to Binance, including $540 million after Shelbit faced regulatory penalties in Dubai. Binance responded by denying it maintained Shelbit-controlled accounts and characterized the figures as overstated. The exchange also said any links had been reported and frozen in line with compliance procedures.
The latest forfeiture filing aligns with the US Treasury’s ongoing campaign against Iranian actors, which has led to sanctions on platforms such as Nobitex, Aban Tether, Shelbit, and wallets associated with Iran’s central bank.
Binance remains subject to a three-year compliance monitorship as a result of its 2023 guilty plea to US anti-money-laundering and sanctions violations, which led to penalties totaling $4.3 billion.
