Binance Tied to $61M Iranian Oil Money Laundering Scheme

The US Justice Department has filed a civil forfeiture claim seeking $61 million tied to Iranian oil money laundered through Binance. The funds are alleged to be part of more than $1.5 billion in illicit oil proceeds laundered by Iran using cryptocurrency. Two Chinese entities, Blessed Trust Limited and Hexa Whale Trading Limited, used trading accounts on Binance as part of the scheme.

Prosecutors allege that these entities presented themselves as a wealth management firm and a commodities broker respectively. They allegedly used the US financial system to send and receive tens of millions of dollars as part of the scheme. The illicit oil proceeds were transferred to an Iranian exchange and money transmitters acting as fronts for Iran's Islamic Revolutionary Guard Corps.

Binance said it did not allow transactions with sanctioned individuals and would continue working with law enforcement, investigating and freezing accounts where risks were identified. This is the latest in a series of legal actions taken by US prosecutors against Iran in recent months. In February, an internal Binance investigation found more than $1 billion moved through the platform to Iranian entities linked to terrorist groups.