US seeks to seize $61 million in Iranian oil proceeds laundered via Binance

The US Department of Justice announced on Monday that it has filed a complaint to seize $61 million in cryptocurrency alleged to be proceeds from oil sales linked to the Iranian government.

Alleged laundering through Binance

US prosecutors claim that Iranian entities used Chinese companies to channel over $1.5 billion in oil revenue through accounts on Binance, one of the world’s largest cryptocurrency exchanges. This initiative allegedly aimed to transfer the proceeds back to Iran in a move to circumvent international sanctions.

The complaint identifies two Chinese companies, Blessed Trust Limited and Hexa Whale Trading Limited, as primary facilitators in laundering the oil funds. Investigators believe that after being funnelled through these entities, the funds were eventually sent to the Iranian government, its agents, and affiliated organizations.

Mini dictionary: Binance, a global cryptocurrency exchange founded in 2017, is one of the largest platforms by trading volume, enabling users worldwide to buy, sell, and store digital assets.

The Department of Justice stated that these operations are part of a broader scheme by Iranian authorities to evade sanctions through digital assets. The funds are believed to have supported government activities and networks designated by international authorities as terror organizations.

Deputy US Attorney Sean S. Buckley stated that, “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.”

Cryptocurrency’s role in sanctions evasion

While the US complaint focuses on the movement of Tether and other cryptocurrencies, authorities also believe Iran has used bitcoin as part of its strategy. Bitcoin and similar digital assets are favored in such schemes because, unlike traditional financial instruments, they do not require a central issuer and can be transacted outside intermediaries, making them difficult for governments to freeze.

Earlier in July, the US Treasury’s Office of Foreign Assets Control (OFAC) disclosed that Iran had received payments through bitcoin from ships traversing the Strait of Hormuz. OFAC reported that the Ministry of Economy in Iran introduced a service known as Hormuz Safe, which accepts payments in bitcoin and other cryptocurrencies, further increasing Tehran’s ability to bypass restrictions.

Mini dictionary: OFAC (Office of Foreign Assets Control) is a division of the US Department of the Treasury responsible for enforcing economic and trade sanctions against countries and groups considered threats to national security.

Authorities claim that 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.

Cross-border transactions and ongoing actions

Recent reports by the Financial Times indicate that Iran continues to settle cross-border transactions in bitcoin through local crypto exchanges, following advice from the country’s central bank to prioritize measures that support the economy.

Officials say there was no mention of bitcoin in the latest forfeiture claim, but maintain that digital assets, including leading stablecoins and cryptocurrencies, play a critical role in these sanction-evasion efforts.

The ongoing US legal initiative is part of a broader campaign to restrict Iran’s access to global financial networks and to disrupt its ability to sustain government operations via digital assets.

As regulatory scrutiny increases, US agencies continue to investigate and pursue legal action against entities suspected of enabling illicit finance routed through the cryptocurrency ecosystem.