Crypto▼ Bearish
US Treasury targets Iran crypto in Operation Economic Outcast
US Treasury's Operation Economic Outcast targets Iran's crypto use for sanctions evasion, building on $131M USDT freeze in July and $344M in April. Bitcoin near $79k
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The U.S. Treasury Department launched Operation Economic Outcast, a campaign to cut Iran off from international financial networks including cryptocurrency activity that officials say supports sanctions evasion and the Islamic Revolutionary Guard Corps.
President Donald Trump directed the campaign, Treasury said in an announcement. The department plans to pursue people, companies and intermediaries that help Iran sell oil, move money or avoid existing restrictions. Officials said they had already mapped facilitators and financial channels used by Tehran.
Digital assets form a named part of the campaign because Treasury says Iranian officials and connected groups increasingly use cryptocurrency to conduct transactions outside traditional banks. The Office of Foreign Assets Control has authority to sanction people operating in Iran's crypto sector regardless of their location, the department said.
A person does not become sanctioned solely because Treasury announced the campaign. OFAC must still designate the person or entity under U.S. authority, after which property under U.S. jurisdiction would generally be blocked. American individuals and companies are prohibited from providing funds or services to designated parties.
For exchanges, custodians and payment providers, a new designation may require updates to wallet-screening systems and customer controls. Non-U.S. companies may face sanctions exposure when they knowingly facilitate dealings involving blocked Iranian parties.
Operation Economic Outcast follows several U.S. actions against Iran-linked exchanges and wallets during 2026.
On Aug. 7, OFAC sanctioned Shelbit and Aban Tether. The agency also designated Iranian national Siavash Kayvanpour after alleging they helped move funds connected to sanctioned parties. Treasury said IRGC-linked addresses sent more than $1 million in cryptocurrency to Shelbit, while wallets connected to the exchange allegedly transferred more than $2 million to IRGC-controlled addresses. Kayvanpour-linked wallets sent more than $2 million to Nobitex, Iran's largest crypto exchange, Treasury alleged. Shelbit's former management denied knowingly participating in sanctions evasion.