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US Treasury Freezes $1B in Iran Crypto, Sanctions 9 China-Linked Actors

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US Treasury Freezes $1B in Iran Crypto, Sanctions 9 China-Linked Actors

2026-06-11 04:14 UTCBy AlphaScala Research DeskSource reporting: CoinpaperEditorial standards

US Treasury Freezes $1B in Iran Crypto, Sanctions 9 China-Linked Actors

OFAC froze roughly $1 billion in Iran-linked crypto and sanctioned nine China- and Hong Kong-based actors accused of funnelling money to military procurement networks.

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The U.S. Treasury Department froze roughly $1 billion in cryptocurrency tied to Iran and sanctioned nine individuals and entities accused of funnelling money to the country's military procurement networks.

The Office of Foreign Assets Control announced the designations under the administration's Economic Fury campaign. The targets include Chinese and Hong Kong-based companies and individuals accused of helping Iran's Islamic Revolutionary Guard Corps and the Ministry of Defense and Armed Forces Logistics acquire weapons and move funds through overseas procurement channels.

Treasury Secretary Scott Bessent said the department is working to disrupt foreign procurement networks that support Iran's military. The crypto seizure, which Bessent previously described as officials having "grabbed the wallets," is part of a broader push to cut off digital asset channels Tehran uses to access overseas revenue.

OFAC said the latest sanctions focus on entities that facilitated weapons procurement for the IRGC and MODAFL. The designations fall under Executive Order 13382, which targets weapons of mass destruction proliferators, and Executive Order 13902, which targets persons operating in Iran's financial sector.

Among those sanctioned is Chinese national Liu Boyu, connected to Mustad Limited, a Hong Kong-registered company OFAC previously designated on May 8, 2026. Treasury said Mustad acted as an intermediary and tried to facilitate financial transactions linked to IRGC weapons procurement.

OFAC also designated Wang Hongyi, Xu Lichun, and Mustad Shanghai International Trade Co Ltd, which Treasury said is wholly owned by Mustad.

Hong Kong-based Domus Trading HK Limited was also sanctioned. Treasury said the company operated within Iran's clandestine banking network and attempted to facilitate payments tied to weapons procurement.

The sanctions also hit China-based Iranian national Manuchehr Golchin, described as a facilitator for MODAFL defense acquisitions from China. Chinese national Meng Shaopei, managing director and 100% owner of Hong Kong-based Solos International Limited, was also designated. Treasury said Solos worked to support weapons procurement for MODAFL. Shangshun Hong Kong Ltd was sanctioned because OFAC said it was owned, controlled by, or acting on behalf of Golchin.

The State Department simultaneously imposed sanctions on two entities and two individuals based in Iran and Belarus under Executive Order 13949, citing Iran's conventional arms-related activities.

The latest measures build on U.S. actions taken in May against procurement networks that sourced weapons for the IRGC and Iran's Center for Innovation and Technology Cooperation. Treasury said that network sought to purchase weapons from China, including man-portable air-defense systems.

Treasury said the Economic Fury campaign has disrupted tens of billions of dollars in revenue that could otherwise have been available to Iran and its proxies. The department has also targeted Iran's shadow banking networks, weapons supply chains, oil-related sanctions evasion, terrorist proxy financing, and shadow fleet vessels.

The department warned that foreign companies and individuals supporting illicit Iranian commerce may face sanctions. It also flagged risks tied to Iranian demands for passage through the Strait of Hormuz, saying payments for safe passage, maritime services, or tolls may carry sanctions exposure whether made through fiat currency, digital assets, offsets, informal swaps, in-kind services, or charitable donations.

As a result of the new sanctions, all property and interests in property of the designated persons that are in the United States or controlled by U.S. persons are blocked and must be reported to OFAC. Entities owned 50% or more by blocked persons are also blocked. U.S. persons are generally prohibited from transactions involving blocked property unless authorized by OFAC. Foreign financial institutions that knowingly facilitate major transactions for designated persons may also face secondary sanctions.