The US Treasury has expanded its Iran sanctions framework to cover the country's digital asset sector, citing more than $100 million in crypto payments allegedly used to facilitate Iranian oil sales.
On Monday, the Treasury announced that the Office of Foreign Assets Control (OFAC) issued sectoral sanctions determinations covering digital assets, technology, gold, aviation, and shipping. The agency also sanctioned nearly 60 entities, individuals, and vessels across nuclear, missile, cyber, and oil networks.
The new digital asset determination allows OFAC to sanction foreign individuals and companies operating in or providing services that support Iran's digital asset sector. According to the Treasury, Iran increasingly utilizes crypto as a tool for sanctions evasion, including transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and government insiders.
The agency alleged that UAE-based Ukrainian broker Ivan Obukhov processed over $100 million in crypto payments starting in 2023 to facilitate oil sales on behalf of the IRGC's Quds Force. Consequently, OFAC sanctioned Obukhov and his UAE-based company, Foscom FZE.
Unlike previous actions targeting specific platforms—such as sanctions against UK-registered Zedcex and Zedxion in January, four Iranian exchanges including Nobitex on June 3, and Shelbit and Aban Tether on August 7—the latest sector-wide measure significantly expands the Treasury's ability to sanction foreign parties involved in Iran's wider digital asset ecosystem.
Under the accompanying OFAC determination, any person found to operate in Iran's digital asset sector will face sanctions under Executive Order 13902. Designated parties will have their US-linked property blocked, and foreign banks facilitating significant transactions for them could face restrictions on accessing US accounts.
