US Targets Iran Crypto Sector with Sanctions on Digital Assets

The US Treasury Department has launched Operation Economic Outcast to target nearly 60 entities and individuals connected to Iranian nuclear, missile, cyber, and oil networks. The operation includes a first-of-its-kind sectoral determination that allows the Office of Foreign Assets Control (OFAC) to sanction anyone globally that operates in or supports Iran's digital assets sector.

According to Chainalysis, OFAC has expanded its authority under Executive Order 13902 to cover five Iranian economic sectors, including aviation, gold, shipping, technology, and digital assets. This means that foreign crypto businesses now face broader sanctions exposure when dealing with Iran-linked counterparties.

The Treasury also targeted Ukrainian national Ivan Obukhov, a United Arab Emirates-based broker accused of facilitating oil shipments for Iran's military and its proxies. Since 2023, Obukhov has processed more than $100 million in cryptocurrency payments supporting oil sales for the Islamic Revolutionary Guard Corps-Qods Force.

The sanctions follow earlier actions involving substantially larger volumes of Iranian-linked cryptocurrency. Treasury Secretary Scott Bessent stated in May that the government had seized approximately $1 billion in Iran-linked crypto through a broader campaign targeting sanctioned wallets, oil revenue, and financial networks associated with the Iranian government and the IRGC.