Key facts
- US prosecutors seek forfeiture of $61 million in USDT.
- Funds allegedly linked to black-market Iranian oil sales.
- Chinese firms Blessed Trust and Hexa Whale allegedly used Binance to launder proceeds.
- Proceeds allegedly intended to finance Iran's military and IRGC.
- Tether has frozen the $61 million in USDT.
U.S. prosecutors are seeking the forfeiture of approximately $61 million in cryptocurrency, alleging the funds are linked to black-market Iranian oil sales and were laundered through Binance to finance Iran's government and military. The civil forfeiture complaint alleges that Chinese companies Blessed Trust and Hexa Whale used Binance trading accounts to convert Iranian oil payments into cryptocurrency, benefiting entities including the Islamic Revolutionary Guard Corps, a designated terrorist organization. According to Deputy U.S. Attorney Sean S. Buckley, a network of cryptocurrency actors in China laundered more than $1.5 billion in illicit oil money intended for the Iranian military and the IRGC. The wallets allegedly sent funds to IRGC-linked businesses, crypto addresses, and an Iranian exchange. Tether, the issuer of USDT, has reportedly frozen the $61 million in USDT targeted for forfeiture. This action is part of a broader crackdown on Iran's cryptocurrency activity, following previous U.S. sanctions and Tether's freezing of over $131 million in July.