Key facts
- The DOJ filed a civil forfeiture complaint seeking $61 million in crypto proceeds from Iranian oil sales.
- The funds were allegedly laundered through Binance by two Chinese companies.
- The proceeds were intended to finance the Iranian government and its military, including the IRGC.
- The DOJ stated that over $1.5 billion in illicit oil money was laundered to benefit the Iranian military and IRGC.
- The complaint follows a WSJ report on a DOJ investigation into Binance's alleged role in Iran's illicit fund movements.
The U.S. Department of Justice (DOJ) has initiated a civil forfeiture action targeting approximately $61 million in cryptocurrency, which it alleges are proceeds from the illicit sale of Iranian oil laundered through the crypto exchange Binance. The DOJ stated that two Chinese companies utilized Binance accounts to funnel these funds to the Iranian government and its proxies, including the Islamic Revolutionary Guard Corps (IRGC), to finance its military activities.
According to the DOJ's press release, this $61 million represents a portion of a larger sum exceeding $1.5 billion in illicit oil money that the Iranian government has allegedly used a network of cryptocurrency actors to launder. This action follows reports from the Wall Street Journal indicating that the DOJ had been investigating Binance for its alleged role in facilitating Iran's evasion of sanctions. Binance has reportedly denied these allegations.
The forfeiture complaint was filed shortly after the U.S. Treasury Department launched 'Operation Economic Outcast,' an initiative aimed at isolating Iran economically, with a stated intention to target Iran's cryptocurrency holdings. Despite these developments, the Binance coin (BNB) showed minimal change, trading around $721, up less than 1% on the day, according to TradingView data. Brent crude oil prices remained above $100 per barrel amid escalating tensions between the U.S. and Iran.