$61 Million in Crypto Seized Over Alleged Iran Oil Sanctions Evasion

The US government has filed a civil forfeiture complaint seeking over $61 million in cryptocurrency it alleges represents proceeds from the illicit sale of Iranian crude oil and petroleum products.

The money was generated by Iran's black-market oil sales, which were laundered through a network of cryptocurrency intermediaries in China and elsewhere, according to the US Attorney's Office for the Southern District of New York.

The complaint alleges that two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts at Binance to move and launder proceeds from Iranian oil sales before funneling the money to the Iranian government or its agents.

Blessed Trust allegedly presented itself as a wealth-management firm but provided services that went beyond conventional custody, including receiving and transferring proceeds and providing 'on-ramp' services to convert fiat currency into cryptocurrency.