U.S. seeks to seize $61 million of crypto it claims are proceeds from Iranian petroleum sales to Chinese buyers

• Chinese companies Blessed Trust and Hexa Whale allegedly laundered proceeds through Binance trading accounts, providing 'on-ramp' services to exchange fiat currency for cryptocurrency using U.S.-based crypto issuers
• Tether will 'burn' the cryptocurrency tokens held in target addresses and issue replacement tokens of equal value to be transferred to U.S. government custody
• China accounts for over 80% of Iran's shipped oil in 2025, averaging 1.4 million barrels per day, with Iran reportedly using barter-like arrangements to bypass sanctions

Summary

The U.S. Attorney's Office for the Southern District of New York has filed to seize $61 million in cryptocurrency alleged to be proceeds from illegal Iranian oil sales to Chinese buyers. The complaint claims Tehran operated a network of cryptocurrency actors in China and other locations to launder over $1.5 billion in illicit oil revenues intended to benefit the Iranian military and Islamic Revolutionary Guard Corps (IRGC).

Key Players:

• Two Chinese companies—Blessed Trust and Hexa Whale—allegedly used trading accounts on the Binance cryptocurrency exchange to launder black-market Iranian oil proceeds
• Blessed Trust purportedly operates as a wealth management firm providing "on-ramp" services to convert fiat currency to cryptocurrency
• Both companies serve clients in China's petroleum sector and have processed tens of millions of dollars through the U.S. financial system

Market Implications:

Binance denied permitting transactions with sanctioned individuals, stating it maintains "zero tolerance for sanctions violations" and will cooperate with authorities. Tether Ltd. will "burn" cryptocurrency tokens in targeted addresses and issue replacement tokens to U.S. government custody.

Context:

China accounts for over 80% of Iran's oil shipments in 2025, averaging 1.4 million barrels per day. In April, Washington sanctioned a Chinese independent refinery and warned financial institutions about processing Iranian oil transactions. A September Reuters report indicated Iran used barter-like arrangements to bypass sanctions and purchase billions in Chinese goods.

The case highlights growing U.S. enforcement against cryptocurrency-facilitated sanctions evasion and illicit financing networks.