US Seeks Forfeiture of $61 Million in Iranian Oil Proceeds Allegedly Laundered Through Binance

The US Department of Justice has moved to forfeit $61 million from Iran’s illegal oil sales that it alleges was laundered through cryptocurrency exchange Binance.

Bloomberg reported on September 14 that federal prosecutors in Manhattan filed a civil forfeiture complaint that day, alleging Iran used a China-based cryptocurrency network to launder more than $1.5 billion in illicit oil-sale proceeds.

Prosecutors allege that two China-based companies used Binance trading accounts to transfer oil-sale proceeds to the Iranian government, as well as affiliated organizations and agents. They say the funds were used to support military and terrorist activities.

The two companies purported to be an asset management firm and a commodities brokerage. They are also accused of moving tens of millions of dollars through the US financial system in the process.

Binance was not accused of participating in the money laundering.

Shawn Berkley, deputy chief of the Manhattan US Attorney’s Office, said the action seeks to seize and forfeit more than $61 million in Iranian government funds that could have been used for hostile military operations and terrorist attacks targeting the US and its allies.