US Targets Iran’s Crypto Sector, Cites Over $100M in Oil-Linked Payments

The United States is widening its sanctions campaign against Iran to include the country's digital-asset sector, alleging that more than $100 million in cryptocurrency payments were used to facilitate Iranian oil sales.

The U.S. Treasury Department announced the measures Monday as part of a broader sanctions package targeting Iran's digital assets, technology, gold, aviation and shipping sectors.

The Treasury's Office of Foreign Assets Control (OFAC) also sanctioned roughly 60 individuals, entities and vessels linked to Iran's nuclear, missile, electronics and energy industries.

US Targets Iran's Digital-Asset Infrastructure

The new action gives OFAC broader authority to sanction foreign individuals and companies operating in Iran's digital-asset sector or providing services that support it.

According to the Treasury Department, Iran has increasingly turned to digital assets as a means of circumventing U.S. sanctions, including transactions allegedly connected to the Islamic Revolutionary Guard Corps (IRGC) and Iranian government officials.

Treasury officials allege that Ukrainian intermediary Ivan Obukhov, who is based in the UAE, processed more than $100 million in cryptocurrency payments since 2023 to facilitate oil sales benefiting the IRGC's Quds Force.

OFAC subsequently designated Obukhov and his UAE-based company, Foscom FZE.

The allegations have not been independently established in court.

Washington Intensifies Pressure on Iran's Crypto Platforms

The latest action follows a series of U.S. sanctions against cryptocurrency exchanges and wallets associated with Iran.

In January, OFAC sanctioned UK-registered platforms Zedcex and Zedxion, marking an early move against digital-asset trading platforms allegedly connected to Iran.

On June 3, the Treasury sanctioned four Iranian cryptocurrency exchanges, including Nobitex, the country's largest crypto platform.

The move came shortly after Treasury Secretary Scott Bessent said the United States had seized nearly $1 billion in digital assets from Iranian exchanges and wallets.

Washington expanded its campaign again on Aug. 7, when OFAC sanctioned Shelbit and Aban Tether, alleging that the platforms facilitated approximately $5 million in digital-asset transactions connected to Iran.

The latest measure takes the approach further by targeting not only individual platforms but the broader sector in which they operate.

New Order Broadens the Scope of Crypto Sanctions

The key difference between the latest action and previous designations is its broader legal reach.

Rather than focusing exclusively on named exchanges, wallets or intermediaries, the new determination provides a basis for sanctioning parties because of their involvement in Iran's digital-asset sector or their provision of services supporting that activity.

The Treasury said the move significantly expands its ability to target foreign individuals and companies operating in the sectors covered by the sanctions.

Under the accompanying OFAC determination, parties found to be operating in Iran's digital-asset sector can become subject to sanctions under Executive Order 13902.

That potentially increases exposure for companies outside Iran that provide infrastructure, financial services or other forms of support to businesses operating in the targeted sector.

Sanctioned Parties Face Asset Freezes

As with other OFAC designations, property and interests in property belonging to sanctioned parties that fall under U.S. jurisdiction must be blocked.

The measures can also create risks for foreign financial institutions.

Banks and other financial institutions outside the United States that facilitate significant transactions involving sanctioned parties could face restrictions affecting their access to the U.S. financial system and correspondent accounts held with U.S. institutions.

That raises the compliance stakes for companies processing transactions involving Iranian digital assets, particularly where the ultimate source or destination of funds may be difficult to identify.

Crypto Companies Face Broader Compliance Risks

The expansion reflects a shift in Washington's approach to Iran's digital-asset ecosystem.

Instead of limiting enforcement to specific exchanges and wallets, U.S. authorities are increasingly examining the wider infrastructure supporting digital-asset activity connected to Iran.

That means exposure could extend beyond Iranian companies to foreign intermediaries, service providers and financial institutions that facilitate transactions or provide infrastructure to the sector.

For cryptocurrency companies, the implications go beyond simply screening sanctioned wallet addresses.

Compliance teams may increasingly need to assess the broader nature of a transaction, including the counterparties involved, the source and destination of funds and whether a business relationship could be considered connected to a sanctioned sector.

Iran's Crypto Sector Comes Under a Wider Sanctions Net

The move underscores the growing importance of digital assets in U.S. sanctions enforcement.

Cryptocurrency networks can facilitate cross-border transfers without relying entirely on conventional banking infrastructure, making them attractive to businesses and individuals seeking alternative payment channels.

That same characteristic has made them a growing focus for regulators attempting to prevent sanctions evasion.

For Iran, the latest measures could make it more difficult for domestic crypto businesses and foreign intermediaries to interact with the international financial system.