U.S. prosecutors seek the forfeiture of $61 million in cryptocurrency, which they allege came from sanctioned Iranian oil

The United States is attempting to seize $61 million worth of cryptocurrency, which prosecutors allege comes from the illegal sale of Iranian oil and petroleum products. The U.S. Attorney’s Office for the Southern District of New York filed a civil complaint on Monday as part of an investigation into a scheme through which Tehran allegedly laundered more than $1.5 billion.

According to prosecutors, the funds were allegedly transferred through intermediaries in China and other countries and reached the Iranian government, military, and Islamic Revolutionary Guard Corps. Two Chinese companies, Blessed Trust and Hexa Whale, are accused of using Binance accounts to facilitate the operations.

The money is held in USDT, a stablecoin issued by Tether. The company is expected to freeze and take the targeted tokens out of circulation, then issue others of the same value for the custody of the U.S. government.

Seizure does not mean permanent confiscation. A court ruling is required for that.