US Moves to Seize $61 Million in Iranian Oil Crypto Proceeds
The US Department of Justice has filed a civil forfeiture complaint targeting $61 million in cryptocurrency. The funds are alleged to be proceeds from black-market sales of sanctioned Iranian crude oil to Chinese buyers.
The United States has filed a civil forfeiture complaint against $61 million in cryptocurrency. The Justice Department alleges these digital assets represent proceeds from the black-market sale of sanctioned Iranian crude oil. The complaint was filed by the US Attorney's Office for the Southern District of New York. It accuses Tehran of using a network of cryptocurrency actors in China to launder more than $1.5 billion. The illicit funds were intended to benefit the Iranian military and the Islamic Revolutionary Guard Corps.
Deputy US Attorney Sean S. Buckley stated that the seized money would otherwise promote hostile military action. He noted that the funds would finance terrorist attacks against the US and its allies. The complaint names two Chinese companies, Blessed Trust and Hexa Whale, as key participants. These entities allegedly used trading accounts on the Binance crypto exchange to move the illicit funds. The goal was to funnel money to the Government of Iran and its proxies.
Chinese firms accused of laundering oil proceeds
Blessed Trust describes itself as a virtual asset custodial services firm. The complaint alleges it received and transferred the proceeds of black-market oil sales. The firm also provided on-ramp services that allow users to exchange fiat currency for cryptocurrencies. These services were conducted through US-based cryptocurrency issuers. Hexa Whale worked with Blessed Trust and its affiliates to provide similar services.
The complaint states that both companies used the US financial system to move tens of millions of dollars. Their clients include companies in China's petroleum and petroleum products sector. Blessed Trust and Hexa Whale did not respond to requests for comment. Binance stated it has zero tolerance for sanctions violations. The exchange said it did not permit transactions with sanctioned individuals and will cooperate with law enforcement.
Tether to burn tokens in seizure process
Tether Ltd. will burn the cryptocurrency tokens held in the target addresses. It will issue replacement tokens of the same value. These new tokens will be transferred into the custody of the US government. Tether did not immediately respond to a request for comment. This mechanism allows the government to take control of the digital assets without disrupting the broader blockchain ledger.
China remains primary buyer of Iranian oil
In April, Washington sanctioned an independent refinery in China. The US also warned financial institutions about dealing with Chinese refineries that process Iranian oil. A Reuters report noted that Iran used a barter-like arrangement to bypass sanctions. China accounted for more than 80% of Iran's shipped oil in 2025. This volume averaged 1.4 million barrels per day. GN markets/crypto (en-US) reports that this enforcement action targets the financial infrastructure supporting this trade.
