DOJ Seeks to Seize $61M in Iran Oil Funds From Binance Accounts It Vouched For

The U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint on September 14 seeking to seize about $61 million in cryptocurrency that prosecutors say was linked to black‑market sales of Iranian oil.

Alleged Money Flow

According to the complaint, the funds moved through trading accounts owned by two China‑based firms, Blessed Trust and Hexa Whale, before being transferred to entities associated with Iran’s Islamic Revolutionary Guard Corps (IRGC), a U.S.‑designated terrorist organization.

Binance’s Response

Binance has previously denied that the funds ever reached Iranian entities. In March, the exchange’s co‑CEO described the allegations as “false and defamatory” and said the company had voluntarily responded to a Senate inquiry.

Broader Context

The complaint notes a network of wallets, referred to as “Entity A,” that allegedly moved more than $1.5 billion in proceeds from illicit Iranian oil sales, funneling money to IRGC‑linked services and an Iranian exchange.

Similar Iran‑related sanctions concerns have appeared in prior reporting, including a case where an Iran‑linked exchange in Dubai transferred $676 million onto Binance. Binance previously pleaded guilty to sanctions violations in 2023 and paid a $4.3 billion penalty.

Regulatory Timing

The filing comes shortly before Binance’s planned application for a United Kingdom crypto licence, which is set to open on September 30. The UK Financial Conduct Authority will assess the exchange’s governance and compliance standards in light of recent allegations.

The Justice Department’s complaint does not name Binance as a defendant; it targets the cryptocurrency itself and the two China‑based entities alleged to have facilitated the transfers.