The US Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint on September 14 against $61 million in cryptocurrency tied to Binance accounts and black market sales of Iranian oil.
Prosecutors allege 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.
Same Iran-Linked Entities Binance Called Clean
“Today’s action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere.”
Deputy US Attorney Sean Buckley made the statement announcing the complaint on September 14.
The complaint names the same two entities at the center of a Senate probe earlier this year.
Binance pushed back against claims in March, when Co-CEO Richard Teng called the allegations “false and defamatory.”
Binance maintained that no funds directly touched Iranian entities. However, Monday’s complaint tells a different story.
Prosecutors allege a network of wallets, called Entity A, moved more than $1.5 billion in illicit Iranian oil proceeds. The network funneled money to IRGC-linked services and an Iranian exchange.
A Familiar Pattern for Binance
This is not the first time Binance-linked accounts have surfaced in Iran-related sanctions reporting.
Reuters reported that Shelbit, an Iran-linked exchange Dubai fined, sent $676 million onto Binance.
Historically, Binance pleaded guilty to sanctions violations in 2023, paying a $4.3 billion penalty.
The Justice Department’s complaint does not name Binance as a defendant. Therefore, the action targets the cryptocurrency itself, along with Blessed Trust and Hexa Whale’s alleged role.
Awkward Timing for a UK Return
The filing lands two weeks before Binance’s planned UK license bid opens for applications on September 30.
The exchange is seeking Financial Conduct Authority (FCA) authorization under Britain’s new crypto framework. That process is built around governance and compliance standards.
Meanwhile, a fresh Iran-linked laundering complaint tied to its platform is unlikely to make that case easier. Binance itself faces no charges in the filing.
How the FCA weighs this complaint against Binance’s application will become clearer once the window opens.
Source: BeInCrypto
