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The U.S. Justice Department is seeking forfeiture of about $61.2 million in USDT that prosecutors allege came from black-market Iranian oil sales and moved through a network involving Binance trading accounts. The Sept. 14 complaint names Blessed Trust and Hexa Whale, two Hong Kong companies that Binance previously investigated during scrutiny of its sanctions controls.
DOJ Traces $1.5B in Alleged Oil Proceeds
Federal prosecutors in Manhattan filed a civil forfeiture complaint covering 10 TRON addresses holding approximately 61.19 million USDT. Tether has already frozen the assets, according to the filing.
The DOJ alleges an interconnected group of wallets received and distributed more than $1.5 billion in proceeds from illicit Iranian oil sales. Prosecutors say some funds moved to an Iranian crypto exchange and money-services businesses linked to the Islamic Revolutionary Guard Corps. Deputy U.S. Attorney Sean Buckley said:
“Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on.”
Binance Accounts Feature in Alleged Network
The complaint alleges Blessed Trust and Hexa Whale used Binance trading accounts in transactions involving proceeds from Iranian crude oil and petroleum products sold to buyers in China. Prosecutors allege the companies helped convert fiat currency into crypto and used transactions designed to obscure the source and ownership of funds. The DOJ does not charge Binance in the complaint.
The forfeiture action targets the USDT, and the government’s allegations remain unproven. A court would need to determine whether the assets are subject to forfeiture.
Binance Previously Defended Its Compliance Response
Binance said in March that it became aware of concerns about the two companies following law-enforcement inquiries. The exchange said it offboarded Hexa Whale in August 2025 after an internal investigation and removed Blessed Trust in January 2026 following a separate review.
Binance also said that, to its knowledge, no Binance account had transacted directly with an Iran-based entity. The new complaint focuses instead on alleged indirect flows through Binance accounts and external wallets that prosecutors say were linked to Iranian oil proceeds and Iranian government or IRGC-associated entities.
Frozen USDT Now Faces Forfeiture
The 10 targeted addresses collectively held 61,192,367.59 USDT, according to the complaint. The filing says Tether would cancel the frozen tokens and reissue an equivalent amount of USDT for transfer to a U.S. government-controlled address under the seizure warrant.
The case now moves through civil forfeiture proceedings in the Southern District of New York. No court has yet ruled that the funds are forfeitable or established the government’s allegations against the companies or wider network.
