In a new move expected to trigger reactions, the US is targeting 61 million USD in cryptocurrencies, linking them to Iranian oil sales that bypass American sanctions. Specifically, American authorities claim that a broader network in China is behind the movement of funds, through which more than 1.5 billion USD from illegal oil sales was allegedly laundered, with the ultimate destination being the Iranian government and military entities. At the center of the case are two Chinese companies, Blessed Trust and Hexa Whale, as well as accounts on Binance, while Tether is called upon to "burn" the disputed tokens and issue new ones of equal value on behalf of the US government.
The... US lawsuit
In more detail, the US has filed a civil forfeiture lawsuit for cryptocurrencies valued at 61 million USD, which, according to American authorities, constitute proceeds from sales on the black market of sanctioned Iranian crude oil and petroleum products. According to the lawsuit, filed by the US Attorney's Office for the Southern District of New York, Iran used a network of crypto actors in China and elsewhere in order to "launder" more than 1.5 billion USD from illegal oil sales. This money was intended to benefit the Iranian military and the Islamic Revolutionary Guard Corps (IRGC), as well as to fund the Iranian government and military entities.
"Today we are seizing and seeking the forfeiture of more than 61 million USD belonging to the government of Iran, which could otherwise be used to advance hostile military actions and terrorist attacks against the US and our allies," stated US Deputy Attorney Sean S. Buckley. According to the announcement, two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts on the Binance crypto exchange "to launder the proceeds from sales of Iranian oil on the black market, channeling the illicit funds to the government of Iran, its agents and/or its allies, where they were used to finance terrorist and other activities of the Iranian government."
A Binance spokesperson stated: "Binance has zero tolerance for sanctions violations or illicit activities and did not permit transactions with sanctioned entities. We will continue to cooperate with law enforcement authorities on this matter and, when risk related to sanctions or illicit finance is identified, we will investigate, restrict, or freeze accounts where required, remove users from the platform, and notify the relevant authorities." Blessed Trust presents itself as a wealth management or digital asset custody firm, the lawsuit states.
However, according to the complaint, it had received and transferred proceeds from illegal activities and provided "on-ramp" services, which allow users to exchange traditional fiat currencies for cryptocurrencies. These services were carried out, among other ways, through crypto issuance companies based in the US. Hexa Whale also provided similar services, collaborating with Blessed Trust and its affiliated companies. "Blessed Trust and Hexa Whale also used the US financial system to send or receive tens of millions of dollars as part of this scheme," the lawsuit states. Clients of both companies include, among others, companies operating in the oil and petroleum products sector in China.
"Burning" of tokens
Tether Ltd. will "burn" the crypto tokens located at the targeted addresses and issue new tokens of equal value. The new tokens will be transferred under the control of the US government, according to the lawsuit. It is noted that in April, the US had imposed sanctions on an independent or so-called "teapot" refinery in China, while warning financial institutions that they might face sanctions if they transact with Chinese refineries processing Iranian oil. A Reuters report on September 10 also stated that Iran had used a barter-like agreement to bypass sanctions on oil sales and purchase goods worth billions of dollars from China. China is considered one of the largest buyers of Iranian oil, as it accounted for more than 80% of Iran's seaborne oil exports in 2025, averaging approximately 1.4 million barrels per day.
www.bankingnews.gr
Readers’ Comments