US Treasury Sanctions Iran's Crypto Sector Over $100M Oil-Linked Payments

The US Treasury has expanded its Iran sanctions framework to encompass the country's digital asset sector, alleging that more than $100 million in cryptocurrency payments were processed to facilitate Iranian oil sales. On Monday, the Office of Foreign Assets Control (OFAC) issued sectoral sanctions determinations covering digital assets, technology, gold, aviation, and shipping, while simultaneously blacklisting nearly 60 entities, individuals, and vessels across nuclear, missile, cyber, and oil networks.

According to the Treasury, Iran has increasingly turned to crypto as a "tool of choice for sanctions evasion," including for transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and government insiders. The agency specifically named UAE-based Ukrainian broker Ivan Obukhov, alleging he 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, as part of the broader action.

The digital asset determination marks a significant escalation from previous targeted actions. In January, OFAC sanctioned UK-registered exchanges Zedcex and Zedxion, followed by sanctions on four Iranian exchanges including the country's largest platform, Nobitex, on June 3, just days after Treasury Secretary Scott Bessent announced the seizure of nearly $1 billion in cryptocurrency from Iranian exchanges and wallets. On Aug. 7, OFAC designated exchanges Shelbit and Aban Tether, accusing them of facilitating a combined $5 million in digital assets connected to Iran.

Unlike these prior actions against named platforms, the new sectoral determination provides OFAC with authority to sanction any foreign individual or company determined to operate in or support Iran's digital asset sector under Executive Order 13902. The Treasury stated that designated parties' US-linked property must be blocked, significantly expanding enforcement reach against Iran's evolving use of crypto to circumvent international sanctions.