US DOJ Seeks Forfeiture of $61M in USDT Tied to Iranian Oil Sales
DOJ Alleges Iranian Oil Proceeds Used for Crypto
The US Department of Justice (DOJ) is seeking to forfeit more than $61 million in Tether’s USDT stablecoin. The department alleges the funds are tied to black-market sales of sanctioned Iranian oil and were intended to finance Iran’s government and military, including the Islamic Revolutionary Guard Corps (IRGC).
A stablecoin like USDT is a type of cryptocurrency designed to maintain a stable value, often pegged to the US dollar.
Main Allegations and Freeze Details
- The DOJ filed a civil forfeiture complaint for $61.19 million in USDT.
- Tether froze the funds across 10 addresses on the Tron network in 2025.
- Two Hong Kong-incorporated companies, Blessed Trust and Hexa Whale, allegedly used Binance accounts to move oil sale proceeds.
- A network of related addresses reportedly handled over $1.5 billion, including transfers to IRGC-linked businesses.
From the DOJ Complaint
According to the DOJ complaint, the funds allegedly came from oil sold to buyers in China, with proceeds distributed to IRGC-linked money-transfer businesses, cryptocurrency addresses, and an Iranian exchange. The complaint states the allegations have not been proven, and a court must enter a forfeiture judgment for the US to gain permanent ownership of the assets. A seizure warrant authorizes the FBI to take custody by having Tether destroy the frozen tokens and issue replacements to an FBI-controlled hardware wallet.
Binance and Market Context
A Binance spokesperson told Cointelegraph that Binance does not permit transactions with sanctioned individuals and continues to cooperate with law enforcement. The spokesperson said the case was not filed against the exchange and did not allege wrongdoing by Binance. Meanwhile, Reuters reported that oil prices rose following attacks on Saudi infrastructure and reduced shipping through the Strait of Hormuz, amid ongoing US-Israeli conflict with Iran.
Confirmed Facts from Sources
The sources confirm that Tether froze approximately 61.19 million USDT in 2025. The DOJ has filed a civil forfeiture complaint. Binance has provided a statement. Oil prices increased due to supply disruptions.
Uncertainties and Legal Process
The DOJ’s allegations are part of a civil forfeiture complaint and are not yet proven. The US will only obtain permanent ownership of the assets if a court rules in the government’s favor.
Why This Matters for Sanctions and Crypto
This enforcement action highlights the use of cryptocurrency in evading sanctions. It comes as the US expands financial pressure on Iran, including recent sanctions targeting Iran’s digital asset sector. The ongoing conflict in the Middle East is disrupting oil shipments, affecting global energy markets.
Next Steps in the Forfeiture
The forfeiture process requires a court judgment. If successful, the US will permanently seize the assets. The DOJ filing is part of broader efforts to enforce sanctions against Iran.