The U.S. Department of Justice has filed a civil forfeiture complaint seeking more than $61 million in cryptocurrency allegedly linked to sanctioned Iranian oil sales and money laundering through Binance accounts. Prosecutors filed the action on September 14 in Manhattan.
Federal authorities allege that the funds represent proceeds from black-market sales of Iranian crude oil and petroleum products. They say the money ultimately benefited the Iranian government and military-linked entities, including the Islamic Revolutionary Guard Corps.
The filing targets cryptocurrency rather than Binance itself. The DOJ has not accused the exchange of participating in the alleged laundering scheme.
How the alleged crypto network operated
Prosecutors identified two China-based companies, Blessed Trust and Hexa Whale, as key intermediaries. Both allegedly used Binance trading accounts to move proceeds from Iranian oil transactions into cryptocurrency.
Authorities say the companies presented themselves as legitimate financial or commodities businesses. However, prosecutors allege they helped convert fiat currency into crypto and transfer funds toward Iranian entities and their proxies.
The DOJ also identified a group of interconnected wallets called “Entity A.” According to the complaint, those addresses received and distributed more than $1.5 billion in alleged Iranian oil proceeds.
The broader financial network
The case highlights the growing focus on cryptocurrency as a channel for sanctions evasion. Prosecutors allege the network used both crypto transactions and the U.S. financial system to obscure the source and ownership of funds.
Binance has previously said it detected suspicious activity involving the two entities, removed related accounts and cooperated with law enforcement. The exchange has maintained that the funds did not originate from or ultimately remain on Binance.
The DOJ emphasized that the current action remains a civil forfeiture proceeding. The allegations have not been proven unless a court ultimately enters a judgment in favor of the United States.
