U.S. Treasury targets Iran’s crypto sector in expanded sanctions
U.S. Treasury expands sanctions to Iran’s crypto industry
The U.S. Treasury has added Iran’s cryptocurrency sector to its list of sanctionable industries. This move allows the Office of Foreign Assets Control (OFAC) to blacklist any person or company, anywhere in the world, that operates in Iran’s digital asset space.
The Treasury stated that Iran increasingly uses cryptocurrency to evade sanctions and fund the Islamic Revolutionary Guard Corps (IRGC), a branch of Iran’s military. The decision is part of a broader effort called Operation Economic Outcast, which also targets Iran’s gold, technology, aviation, and shipping sectors.
This change does not automatically sanction all Iranian crypto companies. Instead, it gives OFAC the authority to impose sanctions on specific entities in the future.
Key details of the new sanctions
- The U.S. Treasury can now sanction any entity operating in Iran’s crypto sector, regardless of location.
- Iran’s crypto ecosystem was valued at $7.78 billion in 2025, with IRGC-linked wallets receiving over $3 billion.
- Since 2023, UAE-based broker Ivan Obukhov processed over $100 million in crypto for Iranian oil sales linked to the IRGC-Qods Force.
- Nearly 60 entities were sanctioned under Operation Economic Outcast, including Obukhov.
- Two Iranian crypto exchanges, Shelbit and Aban Tether, were sanctioned earlier this month for processing millions tied to the IRGC.
What the Treasury announcement says
The Treasury’s official statement claims that Iran’s regime relies on cryptocurrency as a primary tool for sanctions evasion. It highlights that IRGC-linked wallets received more than $3 billion in crypto in 2025, accounting for over half of Iran’s crypto inflows in the last quarter of the year. However, these estimates only cover wallets publicly tied to sanctions listings.
The Treasury also sanctioned Ivan Obukhov, a Ukrainian vessel broker based in the UAE, for allegedly processing over $100 million in crypto payments to facilitate Iranian oil sales for the IRGC-Qods Force since 2023.
Why Iran’s crypto sector is being targeted
The U.S. government views cryptocurrency as a way for Iran to bypass financial restrictions. Unlike traditional banking, crypto transactions can be harder to trace, making it easier for sanctioned groups to move money. The Treasury’s move aims to cut off funding to the IRGC and other entities linked to Iran’s military and government.
This is not the first time the U.S. has targeted Iranian crypto activity. Earlier this month, OFAC sanctioned two Iranian exchanges, Shelbit and Aban Tether, for processing transactions tied to the IRGC. In July, the stablecoin company Tether froze $131 million in wallets linked to Iran’s central bank after another OFAC action.
What is confirmed
- The U.S. Treasury has added Iran’s cryptocurrency sector to its list of sanctionable industries.
- OFAC can now sanction any entity operating in Iran’s crypto sector, regardless of location.
- Ivan Obukhov was sanctioned for processing over $100 million in crypto for Iranian oil sales linked to the IRGC-Qods Force since 2023.
- Nearly 60 entities were sanctioned under Operation Economic Outcast, which includes crypto, gold, technology, aviation, and shipping sectors.
- Iran’s crypto ecosystem was valued at $7.78 billion in 2025, with IRGC-linked wallets receiving over $3 billion.
What remains unclear
- The exact number of Iranian crypto entities that will be sanctioned under the new authority is not specified.
- The Treasury’s estimates of IRGC-linked crypto inflows only cover publicly identified wallets, so the total amount may be higher.
- It is unclear how the U.S. will enforce sanctions on foreign crypto companies operating in Iran’s sector.
Why this matters for crypto users and businesses
This move signals increased scrutiny of crypto transactions linked to sanctioned countries. Businesses and individuals dealing with crypto must ensure they are not inadvertently processing transactions tied to Iran or other sanctioned entities. The Treasury’s action could lead to more compliance checks by crypto exchanges and financial institutions to avoid penalties.
