US prosecutors filed a civil forfeiture complaint on September 14 seeking approximately 61.2 million USDT across 10 Tron addresses. Prosecutors allege the funds originated from Iranian crude and petroleum sales intended to benefit Iran's government and military, including the Islamic Revolutionary Guard Corps (IRGC).
The targeted tokens were already frozen by Tether, which immobilized seven addresses in June 2025 and three additional addresses in July. A seizure warrant issued this week authorizes federal agents to take custody of the value.
Execution of the warrant would depend on Tether's control over USDT. According to the complaint, Tether would burn the frozen tokens and issue replacements of equal value for transfer to an FBI-controlled hardware wallet. This mechanism allows US authorities to move identified sanctioned funds from on-chain addresses into government custody without obtaining the private keys controlling the original wallets.
Tether stated it has worked with more than 340 law-enforcement agencies across 67 countries and helped freeze more than $5 billion tied to suspected illicit activity. The September forfeiture action follows the Justice Department crediting Tether with assisting in a separate enforcement matter involving more than $52 million linked to Xinbi Guarantee, an alleged money-laundering marketplace.
Broader network traced through multiple channels
The $61 million seizure represents a fraction of a larger network described in the complaint. Prosecutors identified at least seven interconnected addresses, referred to as "Entity A," that allegedly received and distributed more than $1.5 billion in proceeds from alleged illicit Iranian oil sales.
The alleged network sent cryptocurrency to Iran-based exchange Nobitex and to Middle Eastern money transmitters prosecutors believe were IRGC fronts. Hong Kong-incorporated Blessed Trust Limited and Hexa Whale Trading Limited allegedly facilitated conversion of oil-sale proceeds from fiat currency into cryptocurrency and moved funds through trading accounts at Binance.
The network also touched conventional US banking channels. One unnamed company sent approximately $37.15 million to Hexa Whale through US correspondent accounts in March and April 2024. The same company allegedly sent another $443.49 million to Blessed Trust between November 2024 and March 2025 through correspondent accounts, according to the complaint.
Binance statement
Binance is not accused of wrongdoing in the case. Chief Executive Richard Teng stated that the case "was not filed against Binance and does not allege any wrongdoing by Binance." He noted the exchange has "zero tolerance" for sanctions violations and illicit activity, and said Binance had cooperated with law enforcement since the matter was first raised months ago. Teng added that the exchange investigates, restricts, or freezes accounts where sanctions or illicit-finance risks emerge, and offboards and reports users to authorities when appropriate.
