US Targets Crypto Tied to Alleged Iran Oil Scheme

US authorities are targeting cryptocurrency linked to alleged Iranian oil sales in a move aimed at weakening the country's military and terror-designated organizations. Prosecutors have filed a civil forfeiture complaint seeking $61 million in crypto, alleging it was laundered through Binance accounts by Chinese companies Blessed Trust and Hexa Whale.

The complaint alleges that these companies converted Iranian oil payments into cryptocurrency, routing them through interconnected wallets known as 'Entity A.' This network allegedly handled over $1.5 billion in illicit oil proceeds intended to benefit the IRGC, a US-designated terrorist organization.

Prosecutors say this action is part of a broader crackdown on Iran's cryptocurrency activity, which includes expanded Treasury authority to sanction participants in Iran's digital asset sector and earlier sanctions that prompted Tether to freeze over $131 million.