The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on nine individuals and entities Wednesday, accusing them of supporting Iranian weapons procurement activities. The agency explicitly cited earlier enforcement actions that froze nearly $1 billion in Iranian cryptocurrency-related assets. The latest designations expand the crackdown from crypto finance to procurement supply chains, with targets including a Chinese national and a Hong Kong-registered company.
Chinese National Liu Boyu and Hong Kong Firm Mustad Limited Named
OFAC's list includes Chinese citizen Liu Boyu, alleged to have used intermediaries linked to Hong Kong-based entities to facilitate defense-related procurement transactions for Iran. Payments were routed through offshore financial channels, some tied to restricted military supplies.
Another sanctioned entity is Hong Kong-based Mustad Limited, which Treasury alleged acted as a financial intermediary for procurement arrangements. The company had previously been linked to a May 2026 designation action, according to the agency.
Crypto Asset Freeze Becomes Key Enforcement Lever
The Treasury repeatedly referenced the earlier crypto asset enforcement in its announcement. In early 2026, OFAC froze nearly $1 billion in cryptocurrency assets linked to Iranian military procurement networks. The move is part of the Economic Fury campaign targeting financial flows to Iran's Islamic Revolutionary Guard Corps and the Ministry of Defense and Armed Forces Logistics.
The sanctions are based on Executive Orders 13382 and 13902. Executive Order 13382 targets weapons proliferation networks, while Executive Order 13902 covers entities supporting sanctioned sectors of Iran's economy. Treasury stated both authorities provide legal tools to pursue foreign facilitators and intermediaries.
Offshore Financial Channels Fuel Procurement Operations
According to the announcement, the sanctioned procurement networks relied on international intermediaries and financial facilitators to move funds. Transactions were processed through Hong Kong and other offshore banking systems to evade U.S. sanctions. Treasury Secretary stated: "We will continue to disrupt any financial channel supporting Iranian weapons procurement, including cryptocurrency and traditional banking."
Under the designations, assets belonging to the sanctioned individuals and companies within U.S. jurisdiction are frozen, and U.S. persons are prohibited from engaging in transactions with them. Treasury emphasized the action aims to cut off Iran's access to foreign suppliers and financial services, and prevent procurement networks from using digital assets for cross-border payments.