The US Treasury expanded the Iran sanctions framework to cover the country’s digital assets sector, citing more than $100 million in crypto payments used to facilitate Iran’s oil sales.
Treasury on Monday said The Office of Foreign Assets Control (OFAC) issued sectoral sanctions determinations covering digital assets, technology, gold, aviation and shipping. The agency sanctioned about 60 companies, individuals and vessels across the nuclear, missile, cyber and oil networks.
The Digital Assets Determination allows OFAC to sanction foreign individuals and entities that operate or provide services that support Iran’s digital assets sector. The Treasury said Iran is increasingly using crypto as the “tool of choice for sanctions evasion” for transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and government insiders.
It 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 Widens Crypto Enforcement Against Iran
The sector-wide measure follows a series of US actions against named crypto exchanges and wallets linked to Iran. In January, OFAC approved UK-registered ZSex and ZDxion, marking the first Iran-related names of digital asset exchanges.
On June 3, the Treasury approved four Iranian crypto exchanges, including the country’s largest platform, Nobitex. The move comes days after Treasury Secretary Scott Bessant said the United States had seized nearly $1 billion in cryptocurrency from Iranian exchanges and wallets.
Most recently, OFAC sanctioned the Shelbit and Aban Tether exchanges on August 7, alleging that they facilitated a combined $5 million in digital assets linked to Iran.
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Unlike previous moves against specific platforms, the latest determination provides a basis for sanctions based on Iran’s participation in the broader digital assets sector. The Treasury said the determination “significantly expands” the power to authorize foreign individuals and firms operating or providing support services in covered sectors.
The accompanying OFAC determination states that any person determined to operate in Iran’s digital assets sector would be subject to sanctions under Executive Order 13902.
The Treasury said the US-linked assets of designated parties must be frozen, while foreign banks could face restrictions on access to US accounts to facilitate significant transactions for them.
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