US Seeks $61M in Crypto Linked to Iranian Oil Smuggling
United States authorities are pursuing the forfeiture of approximately $61 million in cryptocurrency connected to black-market sales of sanctioned Iranian crude oil and petroleum products, according to a report by the dailyhodl.com. The U.S. Attorney’s Office alleges that two Chinese entities, Blessed Trust and Hexa Whale, utilized trading accounts at Binance to launder proceeds and route them to the Iranian government and the Islamic Revolutionary Guard Corps.
Prosecutors state that Blessed Trust operated by presenting itself as a virtual asset custody and wealth management firm, while Hexa Whale functioned similarly under the guise of a commodities brokerage. Both companies allegedly helped clients in China’s petroleum sector convert traditional currency into digital assets, interacting with US-based crypto issuers during the process. According to court filings, an unhosted cryptocurrency address network known as Entity A received and distributed more than $1.5 billion in illicit oil proceeds.
Deputy U.S. Attorney Sean S. Buckley emphasized the enforcement operation’s goal of cutting off funding sources for the Iranian military and affiliated proxy groups. Prosecutors claim the broader network used both the cryptocurrency ecosystem and the traditional U.S. financial system to move tens of millions of dollars. The civil forfeiture complaint details allegations that remain unproven pending a formal court judgment.
Based on reporting by dailyhodl.com.
