Binance Tied to $61M in Iranian Oil Funds, DOJ Seeks Forfeiture
The US Department of Justice (DOJ) is seeking to seize $61 million in cryptocurrency tied to Binance accounts, alleging it is linked to black market sales of Iranian oil. The funds moved through trading accounts held by Blessed Trust and Hexa Whale, two China-based firms, before reaching Iran's Islamic Revolutionary Guard Corps (IRGC), a US-designated terrorist organization.
The DOJ complaint names the same entities at the center of a Senate probe earlier this year, which Binance pushed back against in March. Binance Co-CEO Richard Teng called the allegations 'false and defamatory' and highlighted the exchange's industry-leading compliance.
However, the current complaint tells a different story, alleging that Binance-linked accounts have funneled money to IRGC-linked services and an Iranian exchange. This is not the first time Binance has been linked to Iran-related sanctions reporting, with Reuters previously reporting that Shelbit, an Iran-linked exchange, sent $676 million onto Binance.
The Justice Department's complaint does not name Binance as a defendant, targeting the cryptocurrency itself and the alleged role of Blessed Trust and Hexa Whale. This development comes two weeks before Binance's planned UK license bid opens for applications on September 30, with the exchange seeking Financial Conduct Authority (FCA) authorization under Britain's new crypto framework.