US Targets $61 Million in Crypto Linked to Iranian Oil: Where Did the Money Go?
The US Department of Justice has filed a civil forfeiture complaint for the seizure of approximately $61 million in crypto proceeds allegedly derived from sanctioned Iranian oil sales.
The US Department of Justice filed a civil forfeiture complaint in court targeting crypto proceeds allegedly generated from the illicit sale of sanctioned Iranian crude oil and petroleum products. According to prosecutors, the sales in question were intended to finance entities linked to the Iranian government and the Islamic Revolutionary Guard Corps (IRGC).
The filing alleges that two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts on Binance to direct these proceeds to the Iranian government and affiliated entities. It is claimed that Blessed Trust presented itself to financial service providers as a digital asset custody firm while providing fiat-to-crypto conversions for Iran-linked transactions, while Hexa Whale offered similar services while portraying itself as a commodity brokerage firm. According to the filing, customers of both companies included Chinese oil and petroleum product companies.
Addresses Associated with Iranian Oil Sales Received and Distributed Over $1.5 Billion in Funds
The Department of Justice filing stated that interconnected crypto addresses, referred to as Entity A, received and distributed more than $1.5 billion in funds derived from the illicit sale of Iranian oil.
According to prosecutors, money from these addresses was directed to IRGC-linked businesses, crypto addresses, and an Iran-based crypto exchange. The filing alleged that Blessed Trust and Hexa Whale facilitated a significant portion of these transfers.
The approximately $61 million represents the amount of crypto assets covered by the Department of Justice’s forfeiture request. The figure exceeding $1.5 billion refers to the flow of funds allegedly received and distributed by the broader network of addresses identified as Entity A.
US Assistant Attorney General Sean S. Buckley stated that this step aims to block the Iranian government and affiliated organizations from accessing illicit proceeds. The US had previously imposed sanctions targeting Iran’s oil revenues and shipping activities and had sanctioned Iran’s largest crypto exchange, Nobitex, in June. The US described the exchange as a key player in sanctions evasion, terrorist financing, and IRGC-linked transactions.