Key Insights
- Binance news focuses on Richard Teng’s statement that the filing alleges no wrongdoing.
- US DOJ seeks more than $61 million tied to alleged Iranian oil proceeds.
- Prosecutors say Blessed Trust and Hexa Whale used Binance accounts in the alleged network.
In today’s Binance news, CEO Richard Teng says a US DOJ civil filing alleges no wrongdoing by Binance. He says prosecutors directed the action at approximately $61 million in cryptocurrency, rather than the exchange.
However, the complaint alleges two Chinese companies used Binance accounts while handling proceeds from sanctioned Iranian oil sales. Teng also says Binance continues cooperating with law enforcement on the matter.
This response follows Bloomberg’s report on the Southern District of New York complaint. Deputy US Attorney Sean S. Buckley and FBI official James C. Barnacle Jr. announced the filing.
Binance News Focuses on Richard Teng’s Response
Addressing the filing, the Binance CEO says the exchange did not permit transactions involving sanctioned individuals. Moreover, he says Binance applies zero tolerance to sanctions violations and illicit activity.
Teng says Binance has cooperated since authorities raised the matter several months earlier.
When teams identify sanctions or illicit-finance risks, he says they investigate and restrict or freeze affected accounts. Binance may also offboard users and report relevant cases to authorities, according to Teng.
Additionally, Richart Teng says the exchange will act against anyone attempting to evade the law through cryptocurrency. He says Binance will not compromise on security or compliance.
In related Binance news commentary, X commentator Cas Abbé supports Teng’s distinction between the platform and named assets. Abbé connects the matter to February reporting and says the filing contains no new Binance-specific information. He also echoes Teng’s account of the exchange’s response procedures.
US DOJ Details the Iran-Linked Forfeiture
Turning to the filing, US DOJ prosecutors allege the cryptocurrency came from black-market Iranian oil and petroleum-product sales. They say the proceeds were intended to finance Iran’s government and military components. The complaint includes the IRGC, which it identifies as a designated terrorist organization.
Buckley says cryptocurrency actors in China and elsewhere laundered more than $1.5 billion in alleged Iranian oil proceeds. He connects those funds to military activity, terrorism, nuclear development, and ballistic missile programs capable of carrying nuclear payloads. Authorities are seizing and seeking forfeiture of more than $61 million, according to Buckley.
Additionally, Barnacle says FBI investigators traced the scheme and disrupted cryptocurrency flows intended to evade sanctions. He says cutting oil revenue limits money available to Iran’s military and terrorist groups. Barnacle says the FBI will continue tracing funds involving dangerous foreign actors.
Binance News Details the Alleged Account Network
Within that network, the complaint names two Chinese companies, Blessed Trust and Hexa Whale. Prosecutors allege both used Binance trading accounts to launder Iranian oil proceeds and route money to Iran and its proxies. The filing describes Binance as a UAE-based cryptocurrency exchange.
Blessed Trust presented itself as a wealth manager or virtual-asset custodian to financial and cryptocurrency service providers. However, prosecutors allege it received and transferred proceeds from Iranian crude oil and petroleum-product sales. They also say it provided on-ramp services that converted fiat into cryptocurrency through US-based issuers.
Similarly, Hexa Whale presented itself as a commodities broker. Prosecutors allege it offered services resembling Blessed Trust’s operations and worked with that company and its affiliates. Their clients allegedly included companies operating in China’s petroleum and petroleum-products sector.
Moreover, the complaint identifies interconnected unhosted crypto wallets collectively called the Entity A addresses. Prosecutors say those addresses received and distributed more than $1.5 billion from illicit Iranian oil sales. Entity A allegedly routed funds to IRGC-related money services businesses, cryptocurrency addresses, and an Iranian cryptocurrency exchange.
According to prosecutors, associated individuals designed the transactions and wallet structure to obscure the funds’ nature, source, and ownership. Blessed Trust and Hexa Whale also allegedly used the US financial system during the scheme. The complaint says they sent or received tens of millions of dollars through American financial channels.
