Binance Not Named in $61M Forfeiture Case, Co-CEO Says

Richard Teng, Binance's co-CEO, stated on Tuesday that a US forfeiture case involving Iranian oil revenue was not directed at the exchange and contains no accusations of misconduct against it.

On Monday, prosecutors in Manhattan filed the case, seeking around $61 million in cryptocurrency believed to stem from black market sales of sanctioned Iranian crude oil.

What the DOJ Complaint Alleges

The Department of Justice (DOJ) claims that two Chinese firms, Blessed Trust and Hexa Whale, used Binance trading accounts to launder the oil proceeds. BeInCrypto covered the forfeiture filing on Monday.

Blessed Trust is described as a wealth management company, while Hexa Whale operates as a commodities broker. Prosecutors allege that a collection of wallets, labeled Entity A, transferred over $1.5 billion in Iranian oil funds.

The filing states that some money reached Iran's Islamic Revolutionary Guard Corps (IRGC), a military entity designated by the US as a terrorist organization.

Deputy US Attorney Sean Buckley announced the action. Binance is not listed as a defendant, and a civil forfeiture complaint remains an unproven allegation until a court issues a ruling.

What Binance Said

Teng emphasized that Binance maintains zero tolerance for sanctions violations and did not allow transactions involving sanctioned individuals.

He noted that the exchange has worked with law enforcement since the issue was first raised months ago and freezes accounts when it detects illicit finance risks.

“If you seek to use our industry to evade the law, we will find you, freeze you out, and hand you over to the authorities,” Teng said in a post.

In March, Teng dismissed US Senate accusations of Iranian laundering as false and defamatory. The exchange admitted guilt to US sanctions violations in 2023 and paid a $4.3 billion fine.

The case is pending in the Southern District of New York, where a judge will determine whether the funds are subject to forfeiture.