U.S. Moves to Forfeit $61 Million in Crypto Allegedly Tied to Iranian Oil Sales

U.S. prosecutors have filed a civil forfeiture action seeking to seize more than $61 million in cryptocurrency that authorities say is linked to illicit Iranian oil and petroleum product sales, CNBC reported on Sept. 15, citing a complaint filed by the U.S. Attorney's Office for the Southern District of New York. According to the filing, the funds allegedly stem from transactions that violated U.S. sanctions and ultimately supported the Iranian government, the military, and the Islamic Revolutionary Guard Corps. Investigators allege Iran laundered more than $1.5 billion in oil revenue through cryptocurrency participants in Asian countries. The complaint names Blessed Trust and Hexa Whale, alleging they used related transaction accounts to process the proceeds and move funds to the Iranian government, its agents, or affiliated entities. U.S. Deputy Attorney General Sean S. Buckley said the more than $61 million seized and targeted for forfeiture could have been used to support military operations and terrorist activity against the United States and its allies. Prosecutors also allege the two firms provided fiat onramp and offramp services, routed transactions through U.S.-based crypto issuers, and previously moved tens of millions of dollars through the U.S. financial system. Neither company could be reached for comment. The complaint adds that Tether will destroy tokens held at the addresses involved in the case and issue equivalent replacement tokens, which will be transferred to a wallet controlled by the U.S. government.