Federal prosecutors investigate Binance for potential Iran sanctions violations

Federal prosecutors in Manhattan have filed a civil forfeiture complaint seeking to seize approximately $61 million in cryptocurrency linked to alleged money laundering involving proceeds from black-market Iranian oil sales. The funds were reportedly funneled through Binance trading accounts operated by two Hong Kong-based entities, raising fresh questions about the exchange’s ability to police illicit activity on its platform. The complaint, filed on September 14, names Blessed Trust and Hexa Whale Trading as the entities accused of facilitating fund transfers that ultimately supported the Iranian government, including entities linked to the Islamic Revolutionary Guard Corps. The IRGC carries a US designation as a terrorist organization, which makes any financial dealings connected to it a serious federal matter. What the feds are alleging Prosecutors say the $61 million targeted in the forfeiture represents a slice of a much larger scheme. The broader alleged operation reportedly funneled over $1.5 billion in illicit oil proceeds through various digital wallets, with the oil itself directed toward Chinese buyers. The transactions at the center of this complaint occurred between M...