DOJ seeks to seize $61 million in crypto linked to $1.5 billion Iranian oil sanctions evasion network

The U.S. Department of Justice filed a civil forfeiture complaint on Monday seeking approximately $61 million in cryptocurrency allegedly tied to black-market sales of sanctioned Iranian oil, part of a broader network prosecutors say moved more than $1.5 billion to entities including the Islamic Revolutionary Guard Corps (IRGC), which the U.S. designates as a terrorist organization.

Prosecutors allege two Chinese companies, Blessed Trust and Hexa Whale, used Binance trading accounts to help move the funds.

According to the department, two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts on Binance to facilitate transfers connected to Iran.

“Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere,” — Sean S. Buckley, Deputy U.S. Attorney.

The complaint represents another escalation in Washington’s efforts to disrupt financial channels that it says enable Iran to generate revenue despite U.S. sanctions. The latest DOJ crypto forferiture case places cryptocurrency exchanges, intermediaries and unhosted wallets at the center of that enforcement effort.

Prosecutors allege that Blessed Trust presented itself to financial service providers as a digital asset custodial services company while providing fiat-to-crypto conversion services for transactions linked to Iran. Hexa Whale allegedly performed similar functions while operating under the guise of a commodities brokerage.

Both companies reportedly counted Chinese oil and petroleum products companies among their clients, according to the Justice Department.

DOJ crypto forferiture follows $1.5 billion transaction trail

Beyond the $61 million targeted in the complaint, investigators said they identified a network of related unhosted cryptocurrency addresses that collectively received and distributed more than $1.5 billion in proceeds allegedly connected to illicit Iranian oil sales.

The addresses were grouped by prosecutors under the designation “Entity A.” According to the DOJ, the network transferred money to businesses and cryptocurrency addresses associated with the IRGC, as well as an Iranian cryptocurrency exchange.

Blessed Trust and Hexa Whale allegedly played significant roles in facilitating transfers through this broader network. The DOJ crypto forferiture effort therefore extends beyond a single set of transactions, highlighting the department’s focus on tracing digital assets across multiple wallets and intermediaries.

Unhosted wallets, which are not directly maintained by a cryptocurrency exchange or other centralized service provider, can make cross-border investigations more complex. Investigators can nevertheless examine blockchain transaction histories to trace the movement of funds between addresses and identify relationships among participants.

The Justice Department said its investigation uncovered financial activity that prosecutors believe connects cryptocurrency transfers with Iran’s sanctioned oil trade. The allegations remain part of a civil forfeiture proceeding rather than a criminal conviction against the assets’ owners.

“The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads,” — Sean S. Buckley, Deputy U.S. Attorney.

DOJ crypto forferiture adds pressure to Iran’s revenue channels

The latest DOJ crypto forferiture filing comes as the United States continues expanding sanctions aimed at restricting Iran’s access to international revenue streams. Washington has previously targeted Iranian oil revenue and shipping networks as part of its broader sanctions policy.

Last month, Treasury Secretary Scott Bessent announced plans by the Trump administration to impose secondary sanctions targeting several areas associated with Iran’s sources of revenue. The areas identified by U.S. officials included digital assets, technology, aviation, gold and shipping.

The administration described the broader pressure campaign as an “economic D-Day,” signaling a more aggressive approach toward financial channels viewed as supporting Iran.

Cryptocurrency has increasingly become part of that enforcement focus because digital assets can move across borders without relying directly on traditional banking systems. The DOJ crypto forferiture complaint illustrates how U.S. authorities are attempting to use blockchain tracing and asset seizure proceedings to disrupt those flows.

For Binance, the allegations also add to continuing scrutiny of cryptocurrency infrastructure in transactions involving sanctioned jurisdictions. The complaint specifically identifies accounts on the exchange allegedly used by Blessed Trust and Hexa Whale to move proceeds associated with the Iranian oil trade.

DOJ crypto forferiture builds on sanctions against Nobitex

The latest case also follows U.S. action against Iran’s cryptocurrency sector. In June, the United States sanctioned Nobitex, described as Iran’s largest cryptocurrency exchange, accusing it of playing a role in sanctions evasion, terrorist financing and transactions connected to the IRGC.

The measures against Nobitex and the civil forfeiture complaint involving Binance reflect a broader U.S. strategy of targeting both crypto platforms and the financial networks operating around them.

The DOJ crypto forferiture proceeding could ultimately result in the targeted assets being forfeited to the U.S. government if the legal requirements for civil forfeiture are established. The filing itself, however, represents an allegation by federal prosecutors and does not by itself establish that every party or asset identified in the complaint is legally responsible for wrongdoing.

The department’s action underscores the growing role of cryptocurrency tracing in sanctions enforcement. By following blockchain transactions across exchanges, private wallets and intermediaries, U.S. investigators are seeking to identify and disrupt financial networks that allegedly support sanctioned activities.

For Iran, the case adds another layer of pressure on an oil-revenue system already subject to extensive U.S. restrictions. For the cryptocurrency industry, the DOJ crypto forferiture action highlights the continuing regulatory risks surrounding transactions involving sanctioned countries, entities and individuals.

The DOJ crypto forferiture case ultimately centers on whether the approximately $61 million in digital assets can be legally seized as proceeds connected to sanctioned Iranian oil sales. Its outcome could further demonstrate how U.S. authorities intend to use civil forfeiture and blockchain analysis against cryptocurrency-linked sanctions violations.