Key Highlights
- Federal authorities are examining whether Binance facilitated transactions that breached U.S. sanctions against Iran
- The probe is spearheaded by Manhattan’s U.S. Attorney’s Office alongside the DOJ’s Criminal Division
- A parallel civil forfeiture action seeks $61 million in cryptocurrency connected to Iranian oil revenue
- Chinese entities Blessed Trust and Hexa Whale purportedly utilized Binance platforms to process Iranian oil funds
- The exchange maintains it enforces strict sanctions compliance and works closely with authorities
Federal prosecutors in the United States are examining whether Binance, the globe’s premier cryptocurrency exchange platform, deliberately facilitated trading activity that contravened U.S. sanctions imposed on Iran. Bloomberg disclosed the investigation on September 22, almost three years following Binance’s $4.3 billion federal resolution in 2023.
The U.S. Attorney’s Office for the Southern District of New York is spearheading the investigation. Washington’s Justice Department Criminal Division is participating in the inquiry. Federal investigators are scrutinizing the exchange’s compliance infrastructure and determining whether Binance possessed knowledge of the disputed transactions.
The exchange issued a prompt response through an official statement. Binance emphasized its strict zero-tolerance approach toward sanctions breaches and confirmed complete cooperation with law enforcement agencies.
The $61 Million Asset Seizure Action
A distinct legal proceeding initiated on September 14 provides additional context to the Iran-related claims. The Southern District of New York submitted a civil forfeiture filing seeking approximately $61 million in USDT distributed across 10 digital currency addresses.
Federal prosecutors contend the assets originated from illicit Iranian crude oil and petroleum transactions. The proceeds allegedly supported Iranian governmental and military organizations, including the Islamic Revolutionary Guard Corps.
The complaint identifies two Chinese corporations: Blessed Trust and Hexa Whale. According to prosecutors, both entities operated Binance trading accounts while managing revenue associated with Iranian oil commerce.
The forfeiture filing refrains from charging Binance with violations. It focuses on the digital currency contained in designated wallets rather than the platform itself.
Authorities assert that a network of cryptocurrency participants laundered in excess of $1.5 billion in illegal oil revenue. Blessed Trust and Hexa Whale reportedly leveraged the U.S. financial infrastructure to transmit or receive tens of millions of dollars.
The targeted holdings are characterized as USDT operating on the TRON blockchain. The filing indicates Tether would destroy the tokens pursuant to a seizure warrant and generate replacement tokens for U.S. government possession.
Binance’s Account and Statement
The exchange presented its version of events regarding its handling of the two companies. According to Binance, law enforcement reached out in April 2025 concerning transactions potentially linked to terrorism financing. The platform furnished documentation for Hexa Whale in June 2025 and terminated the account on August 13, 2025.
The exchange stated it discontinued Blessed Trust in January 2026 following a source-of-funds examination. Binance asserts it discovered no proof that any platform account conducted direct transactions with Iran-based entities.
Binance’s internal analysis determined that approximately $126.1 million ultimately reached Iran-linked wallets after numerous blockchain transfers. Of that total, up to $24.1 million allegedly arrived at IRGC-associated wallets.
The platform highlights its compliance infrastructure in its response. Binance reports that more than 1,500 employees focus on compliance work, representing roughly 25% of its global staff. The exchange managed over 71,000 law enforcement inquiries in 2025.
This development follows Binance’s guilty plea in November 2023 for Bank Secrecy Act violations and breaching the International Emergency Economic Powers Act. That resolution mandated Binance maintain an independent compliance monitor for three years.
The civil forfeiture proceeding in the Southern District of New York continues. All claims remain allegations pending court determination and potential government judgment.
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