US Seizes $61 Million in Cryptocurrencies Linked to Illegal Iranian Oil Sales

The US Department of Justice has filed a civil forfeiture lawsuit against $61 million in cryptocurrencies linked to illegal Iranian oil sales. The funds would have been directed to the Iranian government and the Islamic Revolutionary Guard Corps (IRGC), which is designated as a terrorist organization by Washington.

The US government alleges that two Chinese companies, Blessed Trust and Hexa Whale, acted as facilitators using Binance accounts to launder the funds. These companies allegedly used non-custodial cryptocurrency wallets to move the funds through an underground circuit valued at $1.5 billion, known as 'Entity A'. This network is difficult for authorities to track due to its decentralized nature.

The lawsuit comes amid escalating tensions between the US and Iran, which have disrupted global oil flows and driven up energy prices. The US naval blockade around the Strait of Hormuz has pushed Iran to turn to cryptocurrencies to sustain its foreign trade.