DOJ Seeks $61M in Crypto Linked to Iran Funds

The US Department of Justice filed a forfeiture complaint to seize $61 million in cryptocurrency. Prosecutors allege this amount represents a portion of a larger scheme that moved $1.5 billion to Iran. The funds were transferred through a network of interrelated digital wallets. The goal was to finance the Iranian military, specifically the Islamic Revolutionary Guard Corps.

According to a report by The Wall Street Journal, two Hong Kong-based companies acted as intermediaries in the scheme. The entities are named Hexa Whale and Blessed Trust. They facilitated the sale of black-market Iranian oil to buyers in China. The proceeds from these sales were converted into cryptocurrency and moved to Iranian accounts.

Binance Confirms Internal Investigation Findings

Binance confirmed that its internal investigators identified the suspicious activity. The company stated that the two entities moved significant sums through the platform. The exchange subsequently removed both Hexa Whale and Blessed Trust from its services. Blessed Trust had previously served as a business partner for payment services.

The exchange also dismissed several investigators who uncovered the transactions. Binance cited individual circumstances as the reason for their termination. This move occurred after the staff flagged the irregularities to the company's compliance team. The US Attorney's Office noted that some funds passed through the US financial system before reaching Iran.

Prosecutors Target Proceeds From Oil Sales

The complaint states that the companies used Binance to conduct transactions representing oil sale proceeds. The structure of the transfers was designed to obscure the origin of the funds. Prosecutors argue that the digital wallet network served as a laundering mechanism. The seized assets are intended to compensate for the illegal financial flows.

This case adds to a series of legal issues involving the exchange. Binance previously pled guilty to violating anti-money-laundering and sanctions laws in 2023. The company agreed to pay billions of dollars in fines. Its founder, Changpeng Zhao, served four months in prison before receiving a presidential pardon.

Recent Allegations Involve Large Sum Transfers

The exchange faces additional accusations regarding the movement of $850 million. An Iranian financier named Babak Zanjani is alleged to have used the platform for these transfers. Zanjani denies the claims that he helped fund the country's war chest. Investors also filed a class action lawsuit following a system outage that caused financial losses.

The DOJ report, as covered by GN markets/crypto (en-US), highlights the continued scrutiny of crypto exchanges. Authorities are focusing on how digital assets facilitate cross-border payments. The current action targets the specific proceeds from illicit oil sales. The legal process to seize the $61 million is now underway.