US Targets Iran Crypto Sector Over $100M Oil Payments

The US Treasury has expanded its Iran sanctions framework to cover the country’s digital asset sector, citing more than $100 million in crypto payments allegedly used to facilitate Iranian oil sales. 

On Monday, the Treasury said the Office of Foreign Assets Control (OFAC) issued sectoral sanctions determinations covering digital assets, technology, gold, aviation and shipping. The agency also sanctioned nearly 60 entities, individuals and vessels across nuclear, missile, cyber and oil networks.

The digital asset determination allows OFAC to sanction foreign individuals and companies that operate in or provide services supporting Iran’s digital asset sector. The Treasury said Iran increasingly uses crypto as a “tool of choice for sanctions evasion,” including for transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and government insiders. 

It alleged that UAE-based Ukrainian broker Ivan Obukhov processed over $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 sanctioned UK-registered Zedcex and Zedxion, marking its first Iran-related designations of digital asset exchanges.

On June 3, the Treasury sanctioned four Iranian crypto exchanges, including the country’s largest platform, Nobitex. The action came days after Treasury Secretary Scott Bessent said the US had seized nearly $1 billion in cryptocurrency from Iranian exchanges and wallets.

Most recently, OFAC sanctioned exchanges Shelbit and Aban Tether on Aug. 7, alleging they facilitated a combined $5 million in digital assets connected to Iran. 

Related: Iran-linked entities moved $3.8B through CoinEx, TRM says

Unlike the earlier actions against specific platforms, the latest determination provides a basis for sanctions based on participation in Iran’s wider digital asset sector. The Treasury said the determination “significantly expands” its ability to sanction foreign individuals and companies operating in or providing services supporting the covered sectors.

The accompanying OFAC determination states that any person determined to operate in Iran’s digital asset sector will be subject to sanctions under Executive Order 13902. 

The Treasury said designated parties’ US-linked property must be blocked, while foreign banks facilitating significant transactions for them could face restrictions on access to US accounts. 

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