US DOJ Seeks $61 Million Forfeiture Over Alleged Binance Links to Iranian Money Laundering

• The US Department of Justice (DOJ) has filed a $61 million civil forfeiture case, naming the major cryptocurrency exchange Binance as a key trading venue for illicit money laundering activities linked to the Iranian government and the Islamic Revolutionary Guard Corps (IRGC).

Binance, the world’s largest crypto exchange by trading volume, is once again facing intense regulatory scrutiny as the US Department of Justice (DOJ) filed a civil case alleging its links to heavily sanctioned entities. Through the Deputy United States Attorney for the Southern District of New York and in coordination with the Federal Bureau of Investigation (FBI), the agency is seeking a $61 million civil forfeiture against the involved parties.

The US DOJ Probe on Binance

According to the DOJ allegations, Binance has been facilitating transactions funneled by the Iranian government and its military components, including the terror-designated Islamic Revolutionary Guard Corps (IRGC), through proxy Chinese companies. The complaint specifically named “Blessed Trust” and “Hexa Whale” as Iran’s primary proxies for accessing legitimate, regulated global markets.

The DOJ accused the global exchange of hosting trading accounts for these Chinese entities, which were allegedly used to launder black-market sales of Iranian crude oil and petroleum products. Furthermore, investigators claim that Iran utilized the proceeds of these illicit activities to fund “hostile military action and terrorist attacks against the US” and its allies.

Investigators estimated that Iran has already converted up to $1.5 billion in illicit oil money across a network of cryptocurrency actors, with most of these actors located in China. While the exact volume of dirty money processed through Binance’s infrastructure was not explicitly detailed, the exchange was named as a critical conduit in the laundering pipeline.

In response to the allegations, Binance denied any formal involvement with sanctioned entities, emphasizing its strict zero-tolerance policy regarding illicit finance. The exchange committed to full cooperation with international law enforcement agencies to track, block, and prevent bad actors from operating within its ecosystem.

$61 Million Forfeiture

The DOJ filed a civil forfeiture complaint to seize more than $61 million in assets belonging to the Iranian government. Federal authorities argued that these funds would have been directly channeled to finance terrorism and hostile operations against the United States and its allies if left untouched.

Although Blessed Trust was formally registered as a wealth manager or virtual asset custodial firm, investigators uncovered that it secretly offered on-ramp services to convert fiat currency into cryptocurrency. The agency also discovered that the entity employed US-based crypto issuers to carry out its illegal operations under the guise of legitimate business.

Meanwhile, Hexa Whale marketed itself as a commodities brokering company. In reality, however, investigators found it offered services highly similar to Blessed Trust. The two entities shared direct dealings and common affiliates, focusing their operations on corporate clients in China’s petroleum and petroleum products sector.

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