US prosecutors allege Binance used to funnel US$1.5 billion to Iran
A forfeiture complaint alleges two Hong Kong companies moved cryptocurrency linked to Iranian oil sales through Binance, with prosecutors seeking US$61 million.
The US Department of Justice alleges that Hong Kong-based companies Hexa Whale and Blessed Trust used Binance to transfer about US$1.5 billion to Iran through a network of interrelated digital wallets.
According to the forfeiture complaint, the funds included proceeds from alleged black-market Iranian oil sales to Chinese buyers. Prosecutors also allege that some money passed through the US financial system before reaching Iran and supported a network linked to the Islamic Revolutionary Guard Corps.
The complaint seeks the seizure of US$61 million in cryptocurrency and alleges that the transactions were structured to obscure the funds’ origins. The claims have not been established in court.
Binance reportedly removed Hexa Whale and Blessed Trust after internal investigators identified suspicious transactions. Blessed Trust had also provided payment services to Binance. The exchange attributed the dismissal of some investigators to “individual circumstances”, according to the source.
The case adds to scrutiny of Binance’s compliance record. The exchange pleaded guilty in 2023 to violating US anti-money-laundering and sanctions laws and agreed to pay billions of dollars in fines. Founder Changpeng Zhao served four months in prison on related charges and was later pardoned by President Donald Trump, according to the source.
Binance has also faced previous allegations involving Iranian financier Babak Zanjani and more than US$850 million in transfers. Zanjani denies those allegations.
