US seeks $61M in USDT allegedly tied to sanctioned Iranian oil sales

The U.S. Department of Justice has filed a civil forfeiture complaint seeking the permanent forfeiture of more than $61 million in Tether’s USDT stablecoin. Prosecutors allege the frozen tokens originated from illicit sales of Iranian oil that violated U.S. sanctions and were intended to fund Iran’s government and military entities, including the Islamic Revolutionary Guard Corps (IRGC).

Alleged money‑laundering network

The complaint identifies two Hong‑Kong‑registered entities, Blessed Trust and Hexa Whale, as using Binance accounts to move proceeds from oil sold to buyers in China. A broader network of related addresses is said to have handled and distributed over $1.5 billion, routing funds to IRGC‑linked money‑transfer businesses, additional cryptocurrency addresses, and an Iranian exchange.

Tether’s role and asset freeze

According to the filing, Tether froze approximately 61.19 million USDT across ten addresses on the Tron blockchain in 2025. The seizure warrant authorizes the FBI to take custody of the assets by having Tether destroy the frozen tokens and issue replacements of equal value to be transferred to an FBI‑controlled hardware wallet.

Binance response

Binance stated that it does not permit transactions with sanctioned individuals and will continue to cooperate with law‑enforcement authorities, including investigating, restricting, or freezing accounts where appropriate. The exchange noted that the case does not allege wrongdoing by Binance.

Regulatory context

The action follows the U.S. Treasury’s August expansion of its Iran sanctions framework to cover the digital‑asset sector, enabling authorities to target foreign individuals and companies operating in or supporting that sector. The Treasury previously alleged that a UAE‑based broker processed over $100 million in crypto payments since 2023 to facilitate Iranian oil sales for the IRGC’s Quds Force.

Broader geopolitical backdrop

The filing occurs amid heightened U.S. financial pressure on Tehran and ongoing conflict involving the United States, Israel, and Iran, which has disrupted oil shipments through the Middle East. Recent attacks on Saudi infrastructure and reduced vessel traffic through the Strait of Hormuz have pushed oil prices higher.