CryptoSlate
US prosecutors are seeking forfeiture of approximately 61.2 million USDT across 10 Tron addresses tied to alleged black-market Iranian oil sales. The Southern District of New York filed the civil complaint on Sept. 14, alleging the funds benefited Iran’s government and military, including the Islamic Revolutionary Guard Corps. The tokens were already immobilized after Tether froze seven addresses in June 2025 and three more in July.
Why it matters
A seizure warrant now authorizes federal agents to move the value into government custody. The complaint says Tether would burn the frozen USDT and issue replacements of the same value to an FBI-controlled hardware wallet, giving authorities a way to take custody without obtaining the private keys for the original addresses.
The targeted funds are only a fraction of the wider network described by prosecutors. At least seven interconnected addresses, identified as Entity A, allegedly received and distributed more than $1.5 billion in proceeds from illicit Iranian oil sales. The network allegedly moved funds through Iran-based exchange Nobitex, Middle Eastern money transmitters investigators believe were IRGC fronts, and trading accounts at Binance.
Market impact
The case highlights the enforcement role of centralized crypto infrastructure. Tether can immobilize USDT, while exchanges can restrict accounts, investigate sanctions risks and report suspected illicit activity. Tether said it has worked with more than 340 law-enforcement agencies across 67 countries and helped freeze more than $5 billion tied to suspected illicit activity.
Binance is not accused of wrongdoing in the complaint. CEO Richard Teng said the case was not filed against Binance and does not allege wrongdoing by the exchange. The distinction separates alleged users of Binance accounts from the platforms that can become enforcement chokepoints when investigators trace funds across blockchain and banking channels.
Frequently asked questions
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How much USDT are US prosecutors seeking to seize?
Prosecutors are seeking forfeiture of approximately 61.2 million USDT across 10 Tron addresses.
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How could authorities take custody of the frozen USDT?
The complaint says Tether would burn the frozen USDT and issue replacements of the same value to an FBI-controlled hardware wallet.
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What wider network did prosecutors describe?
Prosecutors described at least seven interconnected addresses that allegedly received and distributed more than $1.5 billion from illicit Iranian oil sales.
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Was Binance accused of wrongdoing in the forfeiture case?
No. Binance is not accused of wrongdoing in the complaint, and CEO Richard Teng said the case was not filed against the exchange.
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Why is the case significant for stablecoin enforcement?
It shows how an issuer-controlled stablecoin can become an enforcement chokepoint, allowing frozen value to be transferred without access to the original wallets’ private keys.
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