US DOJ Targets $61M in Crypto Linked to Iranian Military Oil Sales

The US Attorney’s Office for the Southern District of New York has filed a civil forfeiture complaint against approximately $61 million in cryptocurrency. This amount is allegedly tied to the black-market sale of sanctioned Iranian crude oil and petroleum products, as stated in a September 14 announcement.

Authorities claim that these funds were intended to support the Iranian government and military-linked groups, including the Islamic Revolutionary Guard Corps (IRGC). Prosecutors allege that Chinese companies, Blessed Trust and Hexa Whale, facilitated the laundering of Iranian oil-sale proceeds through accounts on UAE-based Binance.

These firms reportedly assisted clients in China’s petroleum sector in converting fiat currency into cryptocurrency and transferring funds to Iranian government agents and entities connected to the IRGC. The complaint identifies a group of unhosted crypto addresses as “Entity A,” which allegedly received and distributed over $1.5 billion in illicit oil proceeds.

The funds were purportedly transferred to IRGC-related money services businesses and an Iranian exchange through transactions designed to obscure their origin and ownership.

Operation Economic Outcast

This forfeiture action is part of a broader initiative known as “Operation Economic Outcast,” launched by the Treasury Department in August 2026. This operation specifically targets Iran’s financial networks, focusing on actors exploiting cryptocurrency infrastructure to move sanctioned funds.

The case follows increased congressional scrutiny regarding Iran-linked activities involving Binance, including inquiries initiated by Senators Richard Blumenthal and Adam Schiff in 2026.