The U.S. Attorney's Office for the Southern District of New York brought a civil forfeiture complaint seeking more than $61 million in cryptocurrency that it says traces back to illicit sales of sanctioned Iranian oil and petroleum products. Deputy U.S. Attorney Sean S. Buckley said, "Today we are seizing and seeking to forfeit more than $61 million of the Government of Iran's money, which otherwise would have promoted hostile military action and terrorist attacks against the U.S. and our allies."
According to the filing, Tehran leveraged a network of cryptocurrency intermediaries in China and elsewhere to launder over $1.5 billion in oil proceeds. The funds were earmarked to back Iran's government and its military arms, including the Islamic Revolutionary Guard Corps.
The complaint names two Chinese companies, Blessed Trust and Hexa Whale, alleging they used trading accounts at Binance to process proceeds from black-market oil sales and route the money to Iran's government, its operatives, and proxy organizations, where they were used to advance terrorism and other actions undertaken by the Iranian state.
The complaint states that Blessed Trust received and transferred the proceeds and offered fiat-to-crypto on-ramp services, including by using U.S.-based cryptocurrency issuers. It further alleges Hexa Whale provided comparable services and worked with Blessed Trust and related entities. "Blessed Trust and Hexa Whale have also used the U.S. financial system to send or receive tens of millions of dollars as part of this scheme," the complaint alleged. Both companies count customers operating in China's oil and refined-products industry.
CNBC was unable to obtain comment from Hexa Whale or Blessed Trust.
In uncertain times, protecting your savings and planning for growth becomes essential. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
"Binance has zero tolerance for sanctions violations or illicit activity, and Binance did not permit any transactions with sanctioned individuals," a Binance spokesperson said.
Tether did not provide a comment right away when asked.
In April, Washington sanctioned a Chinese "teapot" refinery and warned financial institutions they could face sanctions if they transact with Chinese refiners that handle Iranian crude. A Sept. 10 Reuters report said Iran has used a barter-style setup to skirt oil sanctions and acquire goods from China valued in the billions of dollars. China is reported to be among Iran's largest buyers, accounting for over 80% of Iran's exported oil in 2025, averaging about 1.4 million barrels per day.
For regular crypto users, the headline is not just about geopolitics. When issuers and exchanges act on sanctions cases, token flows can change fast. Knowing who controls your on- and off-ramps helps you see where frictions could show up.
A steady approach to risk and opportunity helps your money work over time. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
