US Proposes Civil Seizure of $61 Million in Crypto Linked to Iran Oil Sales

The U.S. Department of Justice has filed a civil forfeiture lawsuit seeking the seizure of approximately $61 million in cryptocurrency allegedly linked to illegal oil sales by Iran. Prosecutors claim the funds were intended for transfer to the Iranian government, military, and Revolutionary Guard (IRGC).

The case involves two Chinese-linked companies, Blessed Trust and Hexa Whale, which prosecutors allege used Binance accounts to convert illicit oil sale proceeds into cryptocurrency and launder them. Both firms claimed to offer asset management or commodity brokerage services but were reportedly involved in facilitating crypto conversions for Iranian oil sales.

Prosecutors identified a connected cryptocurrency wallet network referred to as 'Entity A,' which allegedly received over $1.5 billion from Iranian oil sales and distributed funds to entities linked to the IRGC, cryptocurrency exchanges within Iran, and other service providers. The government emphasized that while $1.5 billion represents the total traced flow of funds, the current civil forfeiture request targets only about $61 million.

Binance CEO Richard Teng clarified on X (formerly Twitter) that Binance was not named as a defendant in this case and that no wrongdoing by the exchange is alleged. He stated that Binance maintains a zero-tolerance policy for sanctions violations, does not permit transactions with sanctioned individuals, and has cooperated with law enforcement agencies.

Binance previously conducted internal investigations into Blessed Trust and Hexa Whale following U.S. Senate inquiries in March 2026 and removed both entities from its platform. The company also disputed claims made by Senator Richard Blumenthal regarding the case as inaccurate or defamatory, stating that their actions were proactive responses to law enforcement requests.

The U.S. has intensified digital asset enforcement against Iran, with the Treasury Department's Office of Foreign Assets Control (OFAC) imposing sanctions on cryptocurrency exchanges and other entities involved in money laundering and sanction evasion in August 2026. Earlier in July, the Treasury highlighted Iran's use of digital assets for payments to circumvent sanctions on shipping through the Strait of Hormuz.