Binance Faces DOJ Lawsuit Over Alleged Iran Oil Laundering Scheme

The US Department of Justice (DOJ) has filed a lawsuit against Binance, seeking the seizure of approximately $61 million worth of cryptocurrency allegedly linked to the Iranian government and the Iranian Revolutionary Guard Corps (IRGC).

The prosecution alleges that proceeds from the black market sale of sanctioned Iranian oil were laundered through Binance. The funds in question are believed to represent a portion of the illicit sale of Iranian crude oil and petroleum products.

According to the complaint, two China-based companies, Blessed Trust and Hexa Whale, used trading accounts on the UAE-based cryptocurrency exchange Binance to help launder proceeds from the sale of Iranian oil. Authorities claim that these companies presented themselves as legitimate asset management or digital asset custody companies but were in reality involved in transferring funds obtained from the sale of Iranian crude oil and petroleum products.

The investigation alleges that a group of interconnected personal cryptocurrency addresses, dubbed “Entity A,” received and distributed over $1.5 billion in funds derived from the illicit sale of Iranian oil. Transfers were allegedly made from these addresses to money handling companies linked to the IRGC, other cryptocurrency addresses, and an Iran-based cryptocurrency exchange.