The United States Treasury Department has taken action against the A7 Network, designating the Russian shadow banking operation as a significant transnational criminal organization. The network has reportedly been utilized by Iran and the Islamic Revolutionary Guard Corps to evade international sanctions.
On Thursday, the Office of Foreign Assets Control (OFAC) placed the network on its designation list, identifying addresses in Russia, Kyrgyzstan, Nigeria, and Zimbabwe. Concurrently, the Financial Crimes Enforcement Network (FinCEN) proposed a rule under the Combating Russian Money Laundering Act that would prohibit U.S. financial institutions from engaging in fund transmittals involving the network's front companies. The proposed restriction applies to both fiat currency and convertible virtual currencies, potentially binding approximately 348,000 institutions, including cryptocurrency exchanges.
According to FinCEN, the A7 Network relies on the A7A5 token, a ruble-backed digital asset issued by the Kyrgyz-registered firm Old Vector and deployed on the Ethereum and Tron blockchains, with deposits held at Russia's state-owned Promsvyazbank. FinCEN found that more than 180 entities processed at least $179.1 billion in A7A5 tokens between February 2025 and June 2026. The token frequently serves as a bridge into USDT and subsequently into fiat currency.
Treasury officials stated that the network was launched in September 2024 by fugitive Moldovan oligarch Ilan Shor and Promsvyazbank. On the fiat side, the network established or acquired hundreds of sub-agents holding accounts across roughly 435 financial institutions in at least 83 countries, processing more than $17 billion between January 2025 and June 2026. Treasury also linked the network to Iranian weapons procurement entities, Iran's shadow fleet of tankers, the Iranian exchange Nobitex, and the laundering of proceeds from North Korean exchange hacks.
“If you facilitate illicit finance for America's adversaries, you will lose access to the U.S. financial system,” U.S. Treasury Secretary Scott Bessent stated. The comment period for FinCEN's proposed rule will close 30 days after its publication in the Federal Register.
