DOJ Files $61 Million Forfeiture Case Over Iran Crypto Oil Money Scheme

The U.S. Department of Justice filed a civil forfeiture complaint Monday seeking $61 million in cryptocurrency it says was tied to Iran’s black market oil sales, allegedly used to fund the country’s military.

Funds Allegedly Linked To IRGC

Prosecutors claim the money was headed to the Iranian government and its military branches, including the Islamic Revolutionary Guard Corps, which the U.S. classifies as a terrorist organization. A deputy U.S. attorney said the action aims to cut off illegal revenue Iran uses to fund military activity and destabilizing efforts abroad, including its nuclear and missile programs.

The case comes amid ongoing military conflict between Iran and the U.S. that has disrupted oil flows and pushed energy prices higher, with Iran reportedly turning to crypto to work around a naval blockade near the Strait of Hormuz.

How The Network Allegedly Operated

Investigators identified what they describe as a $1.5 billion underground network, internally referred to as “Entity A,” that moved illicit oil proceeds through unhosted cryptocurrency wallets not tied to any centralized exchange.

Two Chinese firms, Blessed Trust and Hexa Whale, allegedly served as key facilitators, using trading accounts on Binance to launder funds before routing them back to Iranian government-linked entities. One firm reportedly offered fiat-to-crypto conversion services, while the other allegedly operated under the guise of a commodities brokerage. Binance said it enforces strict sanctions compliance and did not knowingly permit transactions involving sanctioned individuals, adding that it continues cooperating with law enforcement.