Tether, Binance and a $1.5 billion Iran oil network converge in new US forfeiture case

US prosecutors are in search of to grab $61 million in Tether’s USDT tied to alleged black-market Iranian oil gross sales.

On Sept. 14, the US Attorney’s Office for the Southern District of New York filed a civil forfeiture criticism concentrating on roughly 61.2 million USDT throughout 10 Tron addresses. Prosecutors allege the funds got here from Iranian crude and petroleum gross sales supposed to learn the nation’s authorities and navy, together with the Islamic Revolutionary Guard Corps (IRGC).

The tokens had been already immobilized. Tether froze seven of the focused addresses in June 2025 and one other three in July. A seizure warrant issued this week now authorizes federal brokers to maneuver the worth into authorities custody.

Executing that warrant would rely on Tether’s management over USDT. The stablecoin issuer would burn the frozen tokens and problem replacements of the identical worth for switch to an FBI-controlled {hardware} pockets, based on the criticism.

The mechanism offers US authorities a route from figuring out sanctioned funds on-chain to taking custody with out acquiring the non-public keys controlling the unique wallets. It additionally extends a rising enforcement relationship between US agencies and the issuer of the world’s largest stablecoin.

Days earlier than the Iran submitting, Tether mentioned the Justice Department credited it with helping in a separate motion involving greater than $52 million linked to Xinbi Guarantee, an alleged money-laundering market.

Tether says it has labored with greater than 340 law-enforcement businesses throughout 67 nations and helped freeze greater than $5 billion tied to suspected illicit exercise.

The Xinbi motion is unrelated to the Iranian case, however each developments present how issuer-controlled stablecoins can turn into enforcement chokepoints as soon as authorities establish funds they need restrained.

Prosecutors hint $1.5 billion oil network by way of Binance

Meanwhile, the $61 million seizure represents a fraction of the broader network investigators described.

Prosecutors mentioned a cluster of at the very least seven interconnected addresses, known as “Entity A,” acquired and distributed greater than $1.5 billion in proceeds from alleged illicit Iranian oil gross sales. The addresses allegedly despatched cryptocurrency to Iran-based change Nobitex and to Middle Eastern cash transmitters investigators consider had been IRGC fronts.

Hong Kong-incorporated Blessed Trust Limited and Hexa Whale Trading Limited allegedly helped convert oil-sale proceeds from fiat foreign money into cryptocurrency and transfer the funds through trading accounts at Binance, the largest crypto trading exchange. Blessed Trust offered itself as a wealth-management or digital-asset custody enterprise, whereas Hexa Whale described itself as a commodities dealer, prosecutors mentioned.

The alleged network additionally touched standard US banking channels. One unnamed firm despatched roughly $37.15 million to Hexa Whale by way of US correspondent accounts in March and April 2024, based on the criticism.

The similar firm allegedly despatched one other $443.49 million to Blessed Trust between November 2024 and March 2025 by way of correspondent accounts. Those transfers type a part of prosecutors’ reconstruction of the broader financing network and are separate from the $61 million of USDT now focused for forfeiture.

Binance will not be accused of wrongdoing in the case, a distinction Chief Executive Richard Teng emphasised after the submitting grew to become public. He famous:

“This case was not filed in opposition to Binance and doesn’t allege any wrongdoing by Binance.”

He mentioned the change has “zero tolerance” for sanctions violations or illicit exercise and had cooperated with legislation enforcement for the reason that matter was first raised months in the past. Binance investigates, restricts or freezes accounts the place sanctions or illicit-finance dangers emerge, offboards customers when applicable and stories them to authorities, Teng added.

His response attracts a boundary between alleged actors utilizing Binance accounts and the change knowingly facilitating their exercise. It additionally highlights one other enforcement level in the network: exchanges can limit customers and accounts, whereas Tether can immobilize the underlying stablecoins themselves.

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