Federal Probe Targets Binance Over Potential Iran Sanctions Breach

Key Points

• Federal authorities are examining whether Binance facilitated transactions violating Iranian sanctions
• Manhattan’s U.S. Attorney’s Office spearheads the investigation with DOJ Criminal Division participation
• Authorities filed a civil forfeiture action seeking $61 million in cryptocurrency connected to Iranian oil sales
• Chinese entities Blessed Trust and Hexa Whale purportedly laundered Iranian oil revenues through Binance platforms
• The exchange maintains it has stringent anti-sanctions policies and works closely with authorities

Federal authorities in the United States are examining whether Binance, the globe’s premier cryptocurrency trading platform, deliberately facilitated transactions breaching U.S. sanctions against Iran. Bloomberg disclosed the investigation on September 22, almost three years following the exchange’s historic $4.3 billion federal resolution in 2023.

The U.S. Attorney’s Office for the Southern District of New York directs the investigation. Washington’s Justice Department Criminal Division contributes to the effort. Investigators are scrutinizing the exchange’s compliance infrastructure and whether platform operators knew about the disputed transactions.

The cryptocurrency exchange issued a prompt public response. Company representatives emphasized their strict anti-sanctions stance and complete cooperation with regulatory bodies.

Civil Action Targets $61 Million in Digital Assets

Federal authorities initiated a connected legal proceeding on September 14 that illuminates the Iran-related accusations. The Southern District of New York submitted a civil forfeiture petition seeking roughly $61 million in USDT distributed across 10 digital wallet addresses.

According to federal prosecutors, the assets originated from illicit Iranian petroleum and crude oil transactions. Authorities claim the proceeds were earmarked for Iranian governmental and military organizations, including the Islamic Revolutionary Guard Corps.

The complaint identifies two Chinese corporations: Blessed Trust and Hexa Whale. Federal prosecutors assert both entities maintained Binance accounts while processing funds connected to Iranian petroleum transactions.

The forfeiture petition stops short of charging Binance with misconduct. Instead, it focuses on the digital currency stored in particular wallet addresses rather than the platform itself.

Authorities describe an extensive network of cryptocurrency intermediaries that processed over $1.5 billion in unlawful oil revenues. Blessed Trust and Hexa Whale reportedly utilized American financial infrastructure to transmit or collect tens of millions in proceeds.

The targeted holdings consist of USDT operating on the TRON blockchain. According to the filing, Tether would destroy the tokens following a seizure order and create new ones for federal custody.

Exchange’s Account and Defensive Posture

The cryptocurrency platform offered its perspective on managing the two companies. Representatives stated authorities reached out in April 2025 regarding transactions potentially connected to terrorism financing. The exchange furnished documentation for Hexa Whale in June 2025 and terminated the account on August 13, 2025.

Platform officials reported offboarding Blessed Trust in January 2026 following a fund-origin examination. The company asserts it discovered no indication that any platform account conducted direct transactions with Iran-based organizations.

Internal analysis by the exchange determined approximately $126.1 million ultimately reached Iran-associated wallets through numerous blockchain transfers. From this amount, up to $24.1 million allegedly reached IRGC-connected addresses.

The platform highlights its compliance infrastructure as justification. Representatives state more than 1,500 employees focus on compliance work, representing roughly 25% of total staff. The exchange handled over 71,000 law enforcement inquiries in 2025.

This investigation follows the exchange’s November 2023 guilty plea for violating the Bank Secrecy Act and breaching the International Emergency Economic Powers Act. That agreement mandated an independent compliance monitor for three years.

The civil forfeiture proceeding in the Southern District of New York continues. All accusations remain allegations pending judicial determination in favor of federal authorities.