The US Treasury Department’s Office of Foreign Assets Control (OFAC) has targeted a cluster of cryptocurrency exchanges and individuals accused of processing millions of dollars in digital asset transactions for entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The August 7 action designates Siavash Kayvanpour, the Shelbit Exchange, and affiliated companies including Shelbit General Trading LLC and Crypto Home DMCC. According to OFAC, these entities facilitated between $1 million and $2 million in digital asset transfers routed to IRGC-linked wallet addresses.
Network Connections and Operations
OFAC's designation also references Aban Tether, an entity sanctioned alongside the Shelbit network on the same day. According to the Treasury, these platforms provided financial plumbing for sanctioned actors cut off from traditional banking. The transactions were tied to previously sanctioned entities, including Nobitex, one of Iran’s largest cryptocurrency exchanges. The Shelbit network allegedly provided alternative on-ramps and off-ramps for sanctioned wallets.
In addition to the IRGC connection, Kayvanpour’s network allegedly laundered tens of millions of dollars originating from an online gambling operation through Shelbit’s infrastructure.
Broader Pressure Campaign
The crypto-focused designations form part of a comprehensive economic pressure campaign against Tehran. Since January 2026, OFAC has sanctioned over 100 vessels connected to Iran’s shadow fleet used to evade oil export restrictions.
The Treasury also highlighted a $15 million bounty for information on IRGC financial systems through the State Department’s Rewards for Justice initiative, aimed at gathering intelligence on crypto-facilitated evasion.
Entities named in the action were incorporated across multiple jurisdictions, including structures associated with Dubai-based free trade zones. This highlights how sanctions evasion networks exploit regulatory gaps where crypto businesses can operate with relatively light oversight.
Impact on the Crypto Industry
Following an OFAC designation of a crypto exchange, any US person or entity holding funds connected to the designated addresses must freeze them immediately. Additionally, the action serves as a reminder to global exchanges that interacting with these wallets carries legal risk.
