US expands Iran crypto sanctions over $100M oil payment network

The US Treasury expanded sanctions to Iran's digital asset sector on Aug. 24, giving the Office of Foreign Assets Control authority to target foreign companies supporting the country's crypto industry, as officials alleged a UAE-based broker processed more than $100 million in cryptocurrency for Iranian oil sales.

"The Iranian regime increasingly turns to cryptocurrency as a tool of choice for sanctions evasion," Treasury said in a statement announcing the determination under Executive Order 13902.

The measure accompanied sanctions against nearly 60 entities, individuals and vessels across Iran-linked nuclear, missile, cyber and oil networks. Treasury accused Ivan Obukhov, a Ukrainian national based in the UAE, of processing more than $100 million in crypto payments since 2023 to support oil sales for the Islamic Revolutionary Guard Corps-Quds Force. OFAC also sanctioned Obukhov's company, Foscom FZE.

The sectoral determination extends beyond named exchanges to overseas brokers, payment processors, wallet operators and technology providers, creating a legal basis for future designations based on participation in Iran's digital asset economy. Treasury said the action begins a sustained enforcement campaign under Operation Economic Outcast.

What the new determination covers

The OFAC determination places digital assets among five additional sectors covered under Executive Order 13902, alongside technology, gold, aviation and shipping. The measure took effect Aug. 24, according to OFAC's official notice.

The determination does not automatically sanction every crypto company serving Iranian users. OFAC must identify and designate particular parties before blocking measures apply. However, participation in the sector can now serve as a basis for future designations.

All property and interests in property belonging to designated parties must be blocked when they enter the United States or come under the control of a US person. Companies owned 50 percent or more by blocked parties are also covered. US persons generally cannot transact with designated parties unless OFAC issues an authorization. Foreign financial institutions that knowingly process major transactions for designated parties may face restrictions on correspondent or payable-through accounts in the United States.

Escalating enforcement through 2026

The latest action follows several designations targeting named crypto businesses. In June, OFAC sanctioned Nobitex, Wallex, Bitpin and Ramzinex, extending a crackdown on an alleged $4 billion sanctions-evasion network. Treasury Secretary Scott Bessent said the US had seized nearly $1 billion in cryptocurrency from Iranian exchanges and wallets.

OFAC later targeted Shelbit and Aban Tether on Aug. 7, accusing the two exchanges of processing approximately $5 million involving sanctioned Iranian platforms and other restricted parties. In January, OFAC sanctioned UK-registered Zedcex and Zedxion, marking its first Iran-related designations of digital asset exchanges.

The earlier actions targeted identifiable exchanges and transactions. The new sectoral determination is broader because it creates a legal basis for future sanctions based on participation in Iran's digital asset economy.

Iran's crypto economy reached more than $7.78 billion in 2025, according to Chainalysis, as inflation and limited access to global banking pushed more activity toward digital assets. The IRGC is estimated to account for roughly half of Iran's crypto activity.

The escalation also carries implications beyond Iran. Treasury's threat to eject Iran's trading partners from the US dollar system tests Washington's leverage over countries like China, which has deepened economic ties with Tehran. The move revives debate over Bitcoin and gold as dollar alternatives, with some investors viewing the sanctions campaign as evidence that non-dollar assets offer a hedge against financial statecraft.

Crypto exchanges and compliance providers will now need to monitor OFAC designations, connected wallet addresses and ownership structures. Treasury said the Aug. 24 measures begin a sustained enforcement campaign, indicating that additional Iran-related crypto designations may follow.

This article is for informational purposes only and does not constitute investment advice.