US DOJ Targets Chinese Firms in Civil Forfeiture Action Over Iranian Crypto Scheme

The US Department of Justice has filed a civil forfeiture action against two Chinese companies, Blessed Trust and Hexa Whale, alleging they converted cash into cryptocurrencies for clients tied to the Iranian regime using Binance accounts as a channel.

The complaint seeks to recover approximately $61 million in cryptocurrencies linked to Iranian oil sales on the black market.

Binance CEO Richard Teng clarified that the action does not target the exchange nor accuse it of any wrongdoing, stating 'This case was not brought against Binance and does not allege any wrongdoing on our part.'

Teng emphasized that Binance has zero tolerance for sanctions violations or illicit activity, but did not permit transactions with sanctioned individuals.