US Prosecutors Push to Seize $80 Million in Digital Assets Linked to Illicit Iranian Oil Sales

US federal prosecutors are pushing for the seizure of digital assets valued at 800 billion won ($6.1 million) used as payment for illicit oil sales by Iran's military.

Acting US Attorney Sean Buckley and FBI New York Director James Banak Jr. announced on April 14 (local time) that they filed a civil forfeiture lawsuit targeting digital assets worth $6.1 million (approximately 800 billion won), which were proceeds from the black-market sale of Iranian oil and petroleum products.

The funds are intended for use by the Iranian government and military-affiliated organizations, including Iran's Islamic Revolutionary Guard Corps (IRGC), designated as a terrorist organization by the US.

Prosecutors allege that Chinese-owned companies Blessed Trust and Hexawell laundered the illicit proceeds through Binance accounts. They transferred illegal funds to the Iranian government and its agents, which were later used for terrorism-related activities by Iran's government.

Blessed Trust presented itself as an asset management or digital asset custodian firm but was actually involved in converting fiat currency into digital assets and transferring Iranian oil. Hexawell similarly operated under the guise of a commodities broker while conducting similar operations, according to investigations.

Analysis of wallet addresses identified by prosecutors revealed that over $150 million (approximately 2 trillion won) in illicit oil sale proceeds had been transferred, with these wallets linked to entities associated with the Revolutionary Guard and related financial service providers.

Buckley stated, "This action demonstrates our commitment to blocking illegal funds used to threaten the lives and safety of US and allied citizens by Iran's government and its terrorist proxies." He added that without the forfeiture claim, "these funds would have been used to support hostile military actions and terror attacks against the United States and its allies."

Banak Jr. emphasized that blocking funding from black-market oil sales could weaken Iran's military and terrorist organizations, stating they will continue efforts to drain dangerous foreign actors' financial resources.