DOJ Targets $61M in Crypto Tied to Iran Oil Sales

U.S. prosecutors are seeking to seize $61 million in cryptocurrency allegedly connected to Iran’s black-market oil trade and military financing, according to a civil forfeiture complaint filed Monday by the Department of Justice (DOJ).

The DOJ alleges the crypto proceeds were intended to benefit the Iranian government and military organizations, including the Islamic Revolutionary Guard Corps (IRGC), which the United States designates as a terrorist organization.

Deputy U.S. Attorney Sean S. Buckley said the action reflects Washington’s efforts to cut off illicit funding used by Iran and its proxies. Prosecutors claim Tehran relies on sanctioned crude oil and petroleum sales to finance military operations, terrorism, nuclear development and ballistic missile programs.

The case comes amid escalating U.S.-Iran hostilities since February, which have disrupted oil shipments and driven global energy prices higher. Iran’s crude exports have also fallen amid a U.S. naval blockade and fighting around the Strait of Hormuz, increasing Tehran’s alleged reliance on cryptocurrency to facilitate international trade.

According to prosecutors, investigators uncovered an underground financial network known internally as “Entity A” that processed roughly $1.5 billion in proceeds from Iranian oil sales. The operation allegedly used numerous unhosted crypto wallets to move funds outside centralized exchanges before transferring assets to an Iranian cryptocurrency exchange and wallets and businesses associated with the IRGC.

Chinese companies Blessed Trust and Hexa Whale allegedly served as major facilitators. Prosecutors said both firms used Binance trading accounts to launder oil proceeds before directing funds toward Iran and affiliated entities.

Binance said it has “zero tolerance” for sanctions violations and emphasized that it did not permit transactions involving sanctioned individuals. The exchange said it would continue cooperating with law enforcement and investigate, restrict or freeze accounts when illicit-finance risks are identified.

Blessed Trust allegedly provided fiat-to-crypto conversion services, while Hexa Whale operated similar services while presenting itself as a commodities brokerage. Prosecutors said both companies served Chinese oil and petroleum businesses.