Federal prosecutors in New York have filed a civil forfeiture complaint seeking approximately $61 million in cryptocurrency they allege is linked to proceeds from Iranian oil sales. The Justice Department has not identified the cryptocurrency as USDT.
- Amount sought: Approximately $61 million in cryptocurrency.
- Government’s allegation: The funds are connected to proceeds from Iranian oil sales and alleged sanctions evasion.
- Token identity: DOJ’s announcement names neither USDT nor another cryptocurrency.
- Legal status: The complaint seeks forfeiture. It does not establish that the government has permanently acquired the funds.
What prosecutors allege
The U.S. Attorney’s Office for the Southern District of New York announced the complaint in DOJ Press Release 26-258, marked as updated September 14, 2026. DOJ says the complaint alleges that two Chinese companies, Blessed Trust and Hexa Whale, helped move proceeds from Iranian oil sales through cryptocurrency.
According to DOJ, the companies used trading accounts at Binance to convert fiat currency into cryptocurrency, then moved the funds through transactions intended to conceal their origin and ownership. The announcement does not establish that Binance knowingly took part in the alleged activity.
DOJ also describes a network of interrelated, self-custodied cryptocurrency addresses as “Entity A.” Prosecutors allege the addresses received and distributed approximately $1.5 billion or more in proceeds from illicit Iranian oil sales. That figure covers the broader alleged flows through the addresses, not the approximately $61 million targeted by this complaint.
The government further alleges that some transfers reached money services businesses and cryptocurrency addresses connected to Iran’s Islamic Revolutionary Guard Corps (IRGC), as well as an Iranian cryptocurrency exchange. DOJ says the companies also used the U.S. financial system to send or receive tens of millions of dollars.
These are prosecutors’ allegations, not findings of fact. DOJ says they must be treated as allegations unless a court enters judgment for the United States.
USDT has not been confirmed
DOJ calls the targeted property “cryptocurrency” but does not identify USDT, Tether, or any other token in its announcement. USDT is a stablecoin issued by Tether, but the release alone does not establish that it is involved in the case.
The distinction matters because naming a token can point to the wallets, issuer, or controls involved. DOJ’s announcement does not say that Tether participated in the alleged activity. The token’s identity should not be assumed without confirmation in a court filing or another authoritative record.
Seizure is not the same as final forfeiture
A civil forfeiture case seeks to transfer property to the government on the grounds that it is connected to unlawful activity. DOJ’s announcement says the government is “seizing and seeking to forfeit” the funds. That wording indicates that a seizure is part of the government’s action, but the announcement does not say when the funds were seized or under what authority. A seizure does not mean criminals still control the funds.
A seizure alone does not mean the government has won permanent ownership. The complaint asks for forfeiture, and a court must still rule on the claim. DOJ’s announcement does not provide a case number or filing date.
What the allegations do and don’t show about crypto
Cryptocurrency addresses can leave a public transaction trail, but an address does not automatically reveal a real-world identity. Investigators may connect blockchain activity with exchange records and financial data. Still, a transaction or an address label alone does not establish who controlled the address or what they knew.
The allegations also do not establish that Binance, Tether, or any U.S. financial institution knowingly enabled the alleged scheme. DOJ says the companies used Binance trading accounts and that transfers involved the U.S. financial system. Those claims do not amount to an accusation that the platforms or institutions named in the reporting knowingly participated. The case also comes amid broader U.S. policy on Iranian oil.
Key questions and answers
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How much cryptocurrency is the government seeking?
Approximately $61 million. DOJ also quotes a prosecutor describing the amount as “more than $61 million.”
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Has DOJ confirmed that the funds are USDT?
No. Its announcement describes the property only as cryptocurrency and names neither a token nor an issuer.
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What do prosecutors allege?
DOJ alleges that Blessed Trust and Hexa Whale helped move proceeds from Iranian oil sales through cryptocurrency, including through Binance trading accounts and a network of addresses.
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Has a court permanently forfeited the funds?
No. DOJ’s announcement does not establish a final forfeiture. The government is seeking forfeiture, and the allegations remain unproven unless a court rules for the United States.
