The US Treasury has expanded its Iran sanctions framework to cover the country’s digital asset sector, saying more than $100 million in crypto payments were allegedly used to facilitate Iranian oil sales.
On Monday, the Treasury said the Office of Foreign Assets Control, or OFAC, issued sectoral sanctions determinations covering digital assets, technology, gold, aviation and shipping. The agency also sanctioned nearly 60 entities, individuals and vessels connected to nuclear, missile, cyber and oil networks.
Digital assets added to sectoral sanctions scope
The digital asset determination gives OFAC authority to sanction foreign individuals and companies that operate in Iran’s digital asset sector or provide services that support it. The Treasury said Iran has increasingly used crypto as a 「tool of choice for sanctions evasion,」 including in transactions tied to the Islamic Revolutionary Guard Corps, or IRGC, and government insiders.
The department alleged that UAE-based Ukrainian broker Ivan Obukhov processed more than $100 million in crypto payments since 2023 to facilitate oil sales on behalf of the IRGC’s Quds Force. OFAC sanctioned Obukhov and his UAE-based company, Foscom FZE.
US enforcement against Iran-linked crypto activity keeps widening
The sector-wide action follows a series of US measures against named exchanges and wallets linked to Iran. In January, OFAC sanctioned UK-registered Zedcex and Zedxion, its first Iran-related designations involving digital asset exchanges.
On June 3, the Treasury sanctioned four Iranian crypto exchanges, including the country’s largest platform, Nobitex. That action came days after Treasury Secretary Scott Bessent said the US had seized nearly $1 billion in cryptocurrency from Iranian exchanges and wallets.
More recently, on Aug. 7, OFAC sanctioned exchanges Shelbit and Aban Tether, alleging they facilitated a combined $5 million in digital assets connected to Iran.
From exchange-specific actions to broader sector participation
Unlike earlier actions that focused on specific platforms, the latest determination creates a basis for sanctions tied to participation in Iran’s wider digital asset sector. The Treasury said the move 「significantly expands」 its ability to sanction foreign individuals and companies operating in or providing services that support the covered sectors.
An accompanying OFAC determination states that any person found to operate in Iran’s digital asset sector will be subject to sanctions under Executive Order 13902.
The Treasury also said US-linked property of designated parties must be blocked. Foreign banks that facilitate significant transactions for those parties could also face restrictions on access to US accounts.