OFAC Can Now Sanction Anyone in Iran’s Crypto Sector

The US Treasury has expanded its authority to target Iran’s digital-asset industry. The Office of Foreign Assets Control can now sanction any person or company found to operate in or support Iran’s crypto sector, regardless of where they are based, under an amended Executive Order 13902.

OFAC added digital assets on August 24 to a list of sectors already covered by the order. Technology, gold, aviation and shipping were already on that list.

The change does not automatically sanction every crypto firm serving Iranian users. OFAC still has to name specific people or companies before blocking rules apply. Once named, any property they own under US control must be blocked. Companies that are half or more owned by a sanctioned person are also covered. US banks and individuals generally cannot do business with these parties unless OFAC grants an exception.

Foreign banks face risk, too. If a bank knowingly helps move money for a sanctioned party, it could lose access to US correspondent accounts.

Treasury also named a Ukrainian national, Ivan Obukhov, in the same sanctions round. He is a UAE-based broker accused of arranging oil shipments for Iran’s military and related groups. Treasury said that since 2023, Obukhov moved more than $100 million in crypto payments tied to oil sales connected to Iran’s Revolutionary Guard Quds Force. OFAC also sanctioned Foscom FZE, a company it said Obukhov bought in 2022 and used for his brokerage work.

Treasury did not release wallet addresses, transaction records or the names of buyers tied to the $100 million figure. The number comes from Treasury’s own claim and has not been independently verified against public blockchain data.

The August 24 action was part of a larger sweep. Close to 60 entities, individuals and vessels were sanctioned across networks linked to Iran’s nuclear program, missile program, cyber activity and oil trade.

This is not the first time crypto has come up in Iran sanctions this year. In June, OFAC sanctioned exchanges Nobitex, Wallex, Bitpin and Ramzinex as part of a case involving an alleged $4 billion sanctions evasion network. On August 7, OFAC sanctioned two more platforms, Shelbit and Aban Tether, saying they moved around $5 million tied to already sanctioned Iranian platforms.

The earlier cases focused on named exchanges and specific transactions. The August 24 step is broader because it lets OFAC punish anyone tied to the sector, even without a named transaction yet.

Treasury calls this ongoing push Operation Economic Outcast. Officials said foreign governments would get timelines to shut down Iran-linked activity, though no single deadline was given publicly.

Crypto firms and compliance teams now need to watch OFAC’s designation list closely. Treasury said the August 24 sectoral rule marks the start of a longer enforcement push, meaning more Iran-related crypto sanctions could follow in the coming months.