US Offers $15M Reward to Disrupt IRGC's Cryptocurrency-Facilitated Finances

The US Department of State has launched a $15 million rewards program to gather information on disrupting the financial infrastructure supporting Iran's Islamic Revolutionary Guard Corps (IRGC). The Rewards for Justice program, which was established in 1984, offers cash and relocation assistance to informants who provide actionable intelligence. The focus is on dismantling the IRGC's revenue streams from illicit oil sales, sanctions evasion tactics, and funding proxy militant groups.

The Treasury Department has been increasing sanctions pressure on entities linked to Iranian oil exports, targeting digital asset exchanges that facilitate the IRGC's activities. This move reflects the growing recognition in Washington that cryptocurrency-based sanctions evasion is a significant concern. Exchanges found to have facilitated transactions linked to IRGC funding face severe consequences, including enforcement actions from US regulators.

The program's emphasis on cryptocurrency-based sanctions evasion sends a clear signal to exchanges and payment processors: their Know Your Customer (KYC) and Anti-Money Laundering (AML) programs must be robust. The consequences of gaps in these programs have become more expensive with the introduction of this rewards program.