US Seeks Forfeiture of $61 Million in Crypto Linked to Alleged Iranian Oil Scheme

Federal prosecutors are seeking forfeiture of approximately $61 million in cryptocurrency allegedly tied to black-market Iranian oil sales, according to Decrypt. The civil forfeiture complaint, announced Monday, targets funds the government says were intended to finance Iran's government and military, including the Islamic Revolutionary Guard Corps, a U.S.-designated terrorist organization.

The case matters beyond the courtroom. It shows how enforcement agencies are now tracing and seizing crypto at scale. The wallet network described in the complaint allegedly handled more than $1.5 billion in oil proceeds — a volume figure separate from the approximately $61 million targeted for forfeiture.

Complaint details

The complaint names two Chinese companies, Blessed Trust and Hexa Whale, and alleges they used Binance trading accounts to launder proceeds benefiting Iranian entities. Decrypt reports that Blessed Trust allegedly presented itself as a wealth management or crypto custody business while converting Iranian oil payments from conventional currency into cryptocurrency. Hexa Whale, which described itself as a commodities broker, allegedly provided similar services.

Prosecutors say the companies helped route payments through interconnected wallets identified as "Entity A," which received and distributed more than $1.5 billion in oil proceeds. The wallets allegedly sent funds to IRGC-linked businesses, cryptocurrency addresses, and an Iranian exchange.

"As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC," Deputy U.S. Attorney Sean S. Buckley said in a statement, per Decrypt.

FBI Assistant Director in Charge James C. Barnacle, Jr. framed the action as a financial chokepoint: "By cutting off funds raised by the black-market sale of crude oil, the Iranian military and terrorists are weakened."

Senate inquiry preceded the filing

Both firms appeared in a Senate inquiry into alleged Iran-linked Binance transfers. Senator Richard Blumenthal requested records involving the companies in February, following reports of alleged sanctions violations. Binance denied wrongdoing in connection with those earlier reports, according to Decrypt.

Broader crackdown on Iran's crypto activity

The filing lands amid a broader crackdown. In August, the Treasury expanded its authority to sanction participants in Iran's digital asset sector. That followed July sanctions that prompted Tether to freeze more than $131 million across four Tron wallets.

Decrypt notes that the DOJ announcement does not establish whether those frozen funds overlap with the assets targeted in Monday's complaint. The two actions sit in the same enforcement trend, but the connection, if any, is not documented.

Forfeiture remains unproven

Civil forfeiture allows the government to seek ownership of property allegedly connected to crime. The complaint does not represent a completed forfeiture, and its allegations remain unproven until a court enters judgment in the government's favor. The named companies and any other claimants can contest the action.