US Department of Justice seeks forfeiture of over $61M USDT linked to sanctioned Iranian oil sales
The US Department of Justice (DOJ) is seeking the forfeiture of more than $61 million in Tether’s USDT stablecoin, alleging the funds originated from black-market sales of sanctioned Iranian oil and were intended to finance Iran’s government and military—including the Islamic Revolutionary Guard Corps (IRGC). The case involves Hong Kong incorporated companies and a network of related addresses through which over $1.5 billion in proceeds moved.
Allegations and Fund Transfers
On Monday, the DOJ alleged that Blessed Trust and Hexa Whale, both incorporated in Hong Kong, used Binance accounts to move proceeds from Iranian oil sales to buyers in China. The complaint states that a network of related addresses reportedly received and distributed over $1.5 billion, including transfers to IRGC-linked money-transfer businesses, cryptocurrency addresses, and an Iranian exchange.
A Binance spokesperson told Cointelegraph that the exchange does not permit transactions involving sanctioned individuals and will continue cooperating with law enforcement by investigating, restricting, or freezing relevant accounts. The spokesperson clarified that the case is not filed against Binance itself and does not allege wrongdoing by the exchange.
Tether's Asset Freeze
According to the complaint, Tether froze approximately 61.19 million USDT across 10 Tron network addresses in 2025. A seizure warrant authorizes the FBI to take custody of the assets by requiring Tether to destroy the frozen tokens and issue new tokens of equal value, which will be transferred to an FBI-controlled hardware wallet.
Cointelegraph reached out to Tether for comment but had not received a response by publication time.
The DOJ emphasized that the civil forfeiture complaint’s allegations have yet to be proven. The U.S. will obtain permanent ownership of the assets only if a court rules in favor of forfeiture.
Sanctions Context and Political Pressure
This enforcement action follows the U.S. Treasury’s expansion of its Iran sanctions framework in August 2025 to cover Iran’s digital asset sector. This move enables U.S. authorities to target foreign entities operating within or supporting this sector.
Previously, the Treasury alleged that UAE-based broker Ivan Obukhov processed over $100 million in cryptocurrency payments since 2023 to facilitate Iranian oil sales for the IRGC’s Quds Force.
Oil Conflict and Price Impact
The ongoing war involving the U.S., Israel, and Iran, which began in February 2025, continues to disrupt oil shipments in the Middle East.
Reuters reported on Tuesday that Saudi Arabia’s East-West pipeline remained offline following attacks blamed on Iran-backed militias in Iraq. Concurrently, Iran-aligned Houthi forces launched missile and drone attacks on Saudi Arabia.
As of publication, Brent crude traded at approximately $107.59 per barrel, up 1.81%, while US West Texas Intermediate (WTI) stood around $103.35 per barrel, up 1.93%.
Why it matters
This news is significant as it highlights the expanding application of US sanctions in the digital cryptocurrency space—this case involving Iran is notable for addressing a large-scale operation using crypto assets linked to illicit oil sales. The $61 million USDT forfeiture demonstrates law enforcement’s ability to intervene in financial flows that circumvent traditional banking and leverage cryptocurrency. It also signals ongoing complexities in US-Iran relations amid regional conflict escalation and its repercussions on global oil prices.
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