US targets $61 million in crypto tied to Iranian oil sales laundered through Binance
US targets $61 million in crypto tied to Iranian oil sales
The United States is moving to take control of $61 million in cryptocurrency linked to the black-market sale of Iranian oil. Prosecutors filed a civil forfeiture complaint on September 14, 2026. A civil forfeiture is a legal action that lets the government seize property it claims is connected to crime.
The complaint says the scheme laundered the funds through Binance, a major crypto exchange where users buy and sell digital currencies. Laundering means moving money in a way designed to disguise its illegal origin. Binance itself is not accused of any wrongdoing in the case.
What the complaint claims
- Sales of Iranian crude oil have produced more than $1.5 billion in illicit crypto proceeds, according to the complaint.
- The US says these profits help Iran fund its nuclear program and its military.
- Two Chinese companies, Blessed Trust and Hexa Whale, allegedly transferred and managed the funds.
- The companies allegedly used Binance to launder the proceeds and send them to Iran's government and linked proxy groups.
What the Justice Department says
The forfeiture action was announced by the US Attorney's Office for the Southern District of New York. The department's announcement describes the funds as tied to the Iranian military's black-market oil sales.
The two accounts differ in one detail. The Justice Department says it is seeking forfeiture of the $61 million, while Protos reports that the US is seizing the funds.
What other reporting shows
In February 2026, the Wall Street Journal, Fortune, and the New York Times reported alleged links between Iran and the two Chinese companies. In May, the Wall Street Journal reported that Iran-linked funds were still moving through Binance in 2026 and highlighted one Iranian financier who used the exchange to move $850 million in transactions during 2024 and 2025.
Binance has repeatedly called these reports inaccurate and sued the Wall Street Journal in May, the same month the Department of Justice launched a probe into the transfers on the exchange. The reports have also led US senators to question whether Binance lied before Congress and whether it has avoided money-laundering recommendations.
What is confirmed
- US prosecutors filed a civil forfeiture complaint seeking $61 million in cryptocurrency on September 14, 2026.
- The complaint does not accuse Binance of wrongdoing.
- The Wall Street Journal, Fortune, and the New York Times reported the alleged Iran links in February 2026.
- Binance has publicly disputed those reports and has sued the Wall Street Journal.
What is still unclear
- The claims in the complaint are allegations that have not been proven in court.
- It is not clear from the supplied material whether the $61 million has already been seized or is still being pursued through the courts.
- The complaint does not establish what Binance knew about the transfers, and the exchange disputes the reporting that linked it to the funds.
- The supplied material gives no timeline or outcome for the DOJ probe or the senators' questions.
Why it matters
The US government says it wants to deprive Iran of the profits from sanctioned oil sales and weaken its power, including its ability to fund its nuclear program and military. The case also shows how cryptocurrency is being used to move the proceeds of restricted trade, and it keeps attention on Binance over its compliance, the rules exchanges follow to detect and stop money laundering.
What happens next
The Department of Justice has launched a probe into the transfers on Binance, and US senators have questioned whether the exchange lied to Congress. The supplied reports do not say when these processes might conclude or what the next steps in the forfeiture case will be.