The pact was signed days before the end of his term of office.
The case has a long history. In 2017, a jury in New York determined that the 650 Fifth Avenue building, valued at more than 500 million dollars, should be confiscated for violating sanctions against Iran and for channeling funds to the regime. However, the ruling was later reversed in an appellate instance, opening the door to new legal negotiations
In the last days of his term in office, the Joe Biden administration secretly signed an agreement with an organization identified by its ties to the Iranian regime, in a decision that generated strong controversy in the United States because of its political and security implications.
The pact involved the return of a stake valued at approximately 174 million dollars in a building located in Manhattan, assets that had previously been seized by U.S. authorities due to their alleged relationship with financial structures linked to Iran. The decision was formalized just three days before Biden left the White House, and was later judicially sealed, preventing public access to its details
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The agreement benefited the Alavi Foundation, an organization that for years was under investigation for its indirect connection to the Iranian government. According to judicial records, this foundation would have operated through intermediary structures to hide its link with sanctioned financial institutions, such as Bank Melli, an institution designated by the United States Department of Justice itself
The agreement reached in 2025 establishes the transfer of assets to a new entity called the Amir Kabir Foundation, which shares a large part of its management structure with the original organization. In turn, it is expected that part of the funds will be used to compensate victims of terrorism linked to Iran, although the payment mechanism would be gradual and largely financed with income derived from the returned assets themselves
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One of the most sensitive points in the case is the destination of these resources and the possible impact on the activity of organizations ideologically linked to the Iranian regime within the United States. The Alavi Foundation has funded various religious and cultural institutions, including a mosque on the outskirts of Washington that was the subject of controversy for demonstrations in support of figures of the Iranian leadership.
The secrecy surrounding the agreement, reinforced by the judicial decision to keep it completely secret, only increased suspicion. The lack of transparency in an issue of this magnitude raises questions about the criteria used and the time chosen for approval
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