Binance used to launder illegal oil money, U.S. alleges

Government seeks seizure of US$61M worth of crypto from black market oil sales

Crypto coins

U.S. authorities allege that crypto exchange Binance has been used to launder the proceeds from the sale of Iranian oil on the black market.

In a civil forfeiture complaint filed in the U.S. district court for the Southern District of New York (SDNY), U.S. authorities are seeking to seize US$61 million in cryptoassets that, they allege, represent revenues from black market oil sales by Iran to Chinese buyers.   

The complaint alleges that two Hong Kong-based companies — a digital wealth management firm, Blessed Trust Ltd., and a commodities broker, Hexa Whale Trading Ltd. — helped launder the proceeds of black market oil transactions by providing “on-ramp” services to convert fiat currency into cryptoassets.

In its filing, the U.S. government seeks the seizure of US$61.2 million worth of crypto — the stablecoin, Tether — that has been frozen since mid-2025 in seven interrelated crypto wallets that, the U.S. alleges, have been used to launder more than US$1.5 billion worth of illicit Iranian oil sales. 

The allegations at the heart of the complaint have not been proven in court.