US Targets Iran's Crypto Sanctions Evasion with New Treasury Ruling
The US Treasury's Office of Foreign Assets Control (OFAC) has designated Iran's digital asset sector as sanctionable, targeting Tehran's use of Bitcoin and Tether to evade economic sanctions. Blockchain analytics firm Chainalysis estimates that Iran's crypto ecosystem reached $7.8 billion in value last year, with wallets tied to the Islamic Revolutionary Guard Corps (IRGC) accounting for over half of on-chain activity in the fourth quarter.
The central bank acquired at least $507 million in USDT through Nobitex, the country's largest exchange, and a cross-chain bridge. Researchers describe this setup as a sanction-resistant reserve built outside the traditional dollar system to defend the rial, which has lost nearly 90% of its value due to inflation and sanctions.
Since April, Operation Economic Fury has frozen or sanctioned around $1 billion in Iran-linked crypto, with Tether blocking $344 million in USDT that month. The Treasury Secretary's office formally named digital assets a sanctionable sector of Iran's economy on August 24, relying on Executive Order 13902.
Iran has also used crypto to charge tolls for ships passing through the Strait of Hormuz, and the IRGC relies on subsidized electricity to mine Bitcoin. As blockchain analytics improve, the standoff between Tehran's stablecoin workarounds and Washington's freezing powers looks set to continue.