The US Treasury has expanded its Iran sanctions program to cover the country’s digital asset sector, as officials seek to disrupt what they describe as widespread use of cryptocurrency by Ira
The US Treasury has expanded its Iran sanctions program to cover the country’s digital asset sector, as officials seek to disrupt what they describe as widespread use of cryptocurrency by Iranian networks to evade restrictions and finance oil sales.
On Monday, the Treasury’s Office of Foreign Assets Control (OFAC) outlined new sectoral sanctions covering digital assets, technology, gold, aviation, and shipping. Nearly 60 individuals, entities, and vessels were sanctioned, targeting Iranian networks connected to oil, nuclear, missile, and cyber activities.
The latest move allows OFAC to target foreign individuals and companies said to be operating in, or providing services for, Iran’s digital asset sector. Officials allege that cryptocurrency has become a preferred tool for circumventing US sanctions, including by the Islamic Revolutionary Guard Corps (IRGC) and high-ranking government insiders.
Ivan Obukhov, a Ukrainian national based in the United Arab Emirates (UAE), and his company Foscom FZE, were named among those sanctioned. Authorities claim Obukhov processed more than $100 million in crypto payments since 2023 to help facilitate oil sales for the IRGC’s Quds Force, a special unit accused by US authorities of orchestrating overseas operations.
The US government’s previous sanctions efforts targeted specific exchanges and wallets linked to Iran. In January, OFAC designated two UK-registered platforms, Zedcex and Zedxion, marking their first direct actions against digital asset exchanges serving Iranian interests.
On June 3, the Treasury further tightened restrictions by sanctioning four Iranian crypto exchanges, including Nobitex, which is recognized as the country’s largest digital asset platform. Days earlier, Treasury Secretary Scott Bessent stated that US authorities had seized nearly $1 billion in cryptocurrency from Iranian-linked wallets and exchanges.
Most recently, OFAC added exchanges Shelbit and Aban Tether to its sanctions list on August 7, alleging these entities processed a combined $5 million in digital assets connected to Iran’s oil sector.
These actions follow findings from blockchain analytics firm TRM Labs, which estimated that Iran-linked actors moved approximately $3.8 billion in digital assets through the global exchange CoinEx.
Mini dictionary: OFAC (Office of Foreign Assets Control), a bureau of the US Treasury, administers and enforces economic and trade sanctions targeting foreign countries, individuals, and organizations that threaten US national security or foreign policy.
Unlike prior actions that named particular crypto platforms, the new sectoral determination enables OFAC to impose sanctions based solely on participation in Iran’s broader digital asset sector. This expands the range of potential targets beyond specific services to include virtually any foreign person or firm engaging with Iran’s crypto industry.
The accompanying OFAC determination specifies that any person judged to operate in Iran’s digital asset sector may now face sanctions under Executive Order 13902, a US directive designed to target major sectors of Iran’s economy.
The Treasury stated that the new determination “significantly expands” the US government’s ability to sanction foreign persons and companies supporting Iran’s covered sectors, including digital assets.
Designated individuals and entities will have US-linked property blocked. In addition, foreign financial institutions that knowingly facilitate significant transactions for those on the sanctions list could face restrictions on their own access to US correspondent or payable-through accounts.
Entity/ActionDateDetailsSector-wide Iran crypto sanctionsJune 2024Targets anyone participating in Iran’s digital asset sectorSanctioned 4 Iranian exchanges (including Nobitex)June 3, 2024Direct action against major Iranian platformsSanctioned Zedcex & Zedxion (UK exchanges)January 2024First digital asset exchanges linked to Iranian entitiesShelbit & Aban Tether exchangesAugust 7, 2024Processed $5 million in crypto linked to IranCrypto seized from Iranian-linked exchangesJune 2024Nearly $1 billion, according to US TreasuryUS officials continue to monitor digital currency networks for links to sanctioned Iranian individuals and institutions, warning global firms and exchanges of potential penalties for facilitating prohibited transactions.
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