The US Department of Justice (DOJ) is targeting more than $61.19 million in USDT across 10 Tron network addresses. Prosecutors filed a civil forfeiture complaint alleging the funds stem from illicit sales of sanctioned Iranian oil to buyers in China.
The funds targeted by the DOJ are already immobilized. Tether froze all 10 Tron addresses in 2025 at the request of law enforcement. Although the frozen amount stands at $61.19 million, it represents only a fraction of the total funds moved. The network of crypto addresses linked to the operation reportedly received and distributed more than $1.5 billion in total.
Proceeds from the oil sales did not stop at intermediary wallets. Subsequent transfers flowed to money services businesses directly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC). Additionally, funds were dispersed across several other crypto addresses and local exchanges in Iran.
Hong Kong Shells and Binance Accounts
Two Hong Kong-based companies allegedly facilitated access to the broader financial system. Court filings reveal that entities named Blessed Trust and Hexa Whale used Binance accounts to move funds before withdrawing them to the final recipient network.
Binance promptly responded to the court filings. The exchange emphasized that it is not named as a defendant or wrongdoer in the legal case. It also stated that it continues to actively cooperate with law enforcement throughout ongoing investigations.
The DOJ’s move targeting the oil money network aligns with mounting US financial pressure on Iran. This legal maneuver comes amid broader US-Israel-Iran tensions disrupting regional energy infrastructure. However, all claims set forth in the civil forfeiture complaint remain allegations that have yet to be proven in court.
How Does the FBI Seize Assets on the Blockchain?
Seizing assets on a blockchain typically faces obstacles regarding access to private keys of target wallets. A court-ordered seizure warrant grants the FBI a workaround that leverages the centralized role of the stablecoin issuer.
Rather than attempting to access the targeted Tron wallets, the FBI simply requests Tether to destroy (burn) the frozen tokens worth $61.19 million. Once burned, Tether reissues an equivalent amount of USDT and transfers it directly to a hardware wallet held by the FBI.
For holders of centralized stablecoins, this mechanism serves as a practical reminder. Full token ownership control is an illusion when the issuing entity complies with government seizure warrants. Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
