Washington, March 7: The United States has initiated legal proceedings to seize over $15 million, alleging that the funds are linked to Iran’s illegal oil distribution network. This network reportedly utilized the international financial system to evade US sanctions and provided support to organizations associated with Iran’s Revolutionary Guard.
The US Department of Justice has filed civil forfeiture lawsuits in the District Court for the District of Columbia. These lawsuits claim that more than $15.3 million was used to fund a network that was violating US sanctions through the sale and shipping of Iranian oil.
According to the lawsuits, the funds were allegedly used to facilitate violations of the International Emergency Economic Powers Act (IEEPA) and were linked to organizations such as the National Iranian Oil Company and the Islamic Revolutionary Guard Corps (IRGC) and its Quds Force. The US has already designated both the IRGC and the IRGC-QF as foreign terrorist organizations.
US officials stated that a person named Mohammad Hossein Shamkhani operated a network of companies and associates involved in the sale and shipping of Iranian oil. This network allegedly employed various methods to conceal the true source of the oil and its connections to Iran.
Investigations revealed that the network utilized shell companies, shipping operations, and front firms to obscure the actual source of Iranian petroleum and facilitate international transactions.
The Office of Foreign Assets Control (OFAC) of the US Treasury Department had imposed sanctions on Shamkhani in July 2025. According to OFAC, Mohammad Hossein Shamkhani is the son of Ali Shamkhani, a senior political advisor to Iran’s Supreme Leader and a former head of Iran’s National Defense Council.
OFAC described the entire operation as a vast network of ships, shipping companies, and front firms that generated billions of dollars in profits from oil sales worldwide. The agency noted that this network often profited from the sale of crude oil and other petroleum products from Iran and Russia, with China being the largest buyer.
OFAC also stated that the network employed various complex methods to hide its activities to avoid direct connections to the Shamkhani family, Iran, and Russia.
US Attorney General Pamela Bondi emphasized that the US will not tolerate the use of its financial system to assist sanctioned organizations. She stated that the accused allegedly provided millions of dollars to the IRGC and violated US sanctions, for which they will now face severe consequences.
Assistant Attorney General Tyson A. Dua remarked that this case illustrates how networks linked to Iran attempt to exploit the US banking system. He noted that Shamkhani and his associates secretly used US financial institutions to enrich themselves and benefit Iran-linked terrorist networks.
According to officials, approximately $12.97 million of the seized funds was intended for Wellbred Capital Private Limited and its subsidiary Wellbred Trading DMCC. These companies were allegedly operated by Shamkhani and his associates in a manner that concealed their direct connection to Iran.
Additionally, about $2.4 million was earmarked for Sea Lead Shipping Private Limited and its affiliate Sea Lead Shipping Agency India Private Limited. Investigators claim that these companies were used to provide shipping services for this network.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
