$61 Million in Crypto Seized from Alleged Iran Oil Sanctions Evasion Scheme

US authorities have taken action to seize $61 million in cryptocurrency they claim is tied to Iranian oil sanctions evasion. The funds are alleged to be the proceeds of black-market sales of sanctioned crude oil and petroleum products.

The US Attorneys for the Southern District of New York filed a civil forfeiture complaint against two Chinese companies, Blessed Trust and Hexa Whale, which allegedly laundered the illicit funds through trading accounts at Binance, a UAE-based cryptocurrency exchange.

According to the complaint, the companies provided 'on-ramp' services to convert fiat currency into cryptocurrency, including through U.S.-based issuers. The money was then sent or received in tens of millions of dollars as part of this scheme.

The investigation found that a network of cryptocurrency actors in China and elsewhere laundered more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the IRGC, which is designated as a terrorist organization.