On September 16, 2026, the Southern District of New York Federal Prosecutor’s Office accused two Chinese companies registered in Hong Kong of laundering over $1.5 billion in illicit Iranian oil trades through the world’s largest cryptocurrency exchange, Binance, and funneling the funds to the Iranian government and the Islamic Revolutionary Guard Corps (IRGC) designated as a terrorist organization by the United States. The prosecution, in collaboration with the FBI, seeks to seize approximately $61 million in cryptocurrency from them.
Deputy U.S. Attorney for the Southern District of New York, Sean S. Buckley, stated that the Iranian government relies on black market oil trading to fund its military forces under sanction and support terrorism activities in the Middle East and worldwide, while advancing nuclear weapon programs and ballistic missile development. This operation aims to strip Iran and its terrorist proxies of illegal funds that pose threats to the security of American and international citizens.
The two companies charged in the lawsuit are referred to as “Blessed Trust” and “Hexa Whale.” Blessed Trust claims to be a wealth management or virtual asset custodial service company, while Hexa Whale presents itself as a commodities brokerage firm. The prosecution alleges that both companies are involved in receiving and transferring proceeds from the trade of Iranian oil and petroleum products, with clients including enterprises in the Chinese oil and petroleum industry.
The complaint states that Blessed Trust offers an “on-ramp” service for converting fiat currency into cryptocurrency, utilizing a cryptocurrency issuer in the United States during the process. Hexa Whale, working in conjunction with Blessed Trust and its affiliates, provides similar services. Both companies have utilized the U.S. financial system to transmit tens of millions of dollars.
The lawsuit alleges that a network of interconnected cryptocurrency wallet addresses received and distributed over $1.5 billion from illicit Iranian oil trades, with funds flowing to currency service providers associated with the Revolutionary Guard, cryptocurrency addresses, and an Iranian cryptocurrency exchange. Through multi-layered transactions and specific cryptocurrency addresses, the two companies obscured the nature, source, and actual ownership of the funds.
A spokesperson for Binance stated that the company upholds a “zero-tolerance” policy towards sanctions violations or illegal financial activities, confirming they were not indicted or charged by the U.S. Department of Justice in this case.
This case involves civil asset forfeiture proceedings rather than criminal convictions against Blessed Trust or Hexa Whale.
The accusations concerning the assistance provided by the two companies in the transfer of Iranian oil trade proceeds and the flow of funds to the Islamic Revolutionary Guard Corps are stated in the complaint by the prosecution, pending final determination by the court.