US Attorney for the Southern District of New York Jay Clayton said the payment followed nearly two decades of litigation over assets connected to 650 Fifth Avenue, a 36-story building authorities said concealed financial interests of the Iranian government through Bank Melli.
“Iran has sponsored terrorism for decades... Since the inception of this litigation… we pursued hidden Iranian government assets tied to a Manhattan skyscraper to ensure those funds would ultimately compensate victims of Iran-sponsored terrorism rather than terrorists and their enablers,” Clayton said in a statement.
The case began in 2008, when US authorities moved to seize assets linked to Bank Melli Iran, which had allegedly used front companies to maintain a stake in the building and bypass sanctions. Prosecutors said the structure allowed Iran to generate income from the property while concealing ownership.
The 650 Fifth Avenue tower was built before the 1979 revolution by the Pahlavi Foundation as a source of revenue, but control of the property passed to the Islamic Republic after the fall of the monarchy. In later years, the foundation was renamed the Alavi Foundation, while Bank Melli acquired a stake in the building that US authorities say was managed through front companies known as Assa.
Under a final settlement reached in January 2025 between the US government, victims’ groups and the building’s owners, $318 million will be paid to victims. The initial $129 million installment was completed on March 20, with the remaining $189 million to be paid over three years with interest.
Clayton said the case reflected the Justice Department’s goal of “vindicating the rights of victims of the Government of Iran’s long-standing policy of supporting and promoting terror attacks across the world.”
Victims eligible for compensation include those affected by attacks attributed to Iranian-backed groups, including the 1984 bombing of US military facilities in Beirut, the September 11 attacks and other incidents targeting civilians.
As part of the settlement, the partnership controlling the building is being dissolved, and ownership transferred to a new entity, with approvals from US authorities including the Treasury Department.
