US Treasury Sanctions Crypto Exchanges Accused of Aiding Iranian Regime

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated two crypto exchanges, Shelbit Exchange and Aban Tether, along with their operator Siavash Kayvanpour and four affiliated front companies. The designation is due to allegations that these entities helped Iran's Islamic Revolutionary Guard Corps (IRGC) move money through the crypto system.

The alleged transactions involve over $1 million in crypto sent from IRGC wallets to Shelbit, with Shelbit sending more than $2 million back. Kayvanpour is also accused of sending over $2 million to Nobitex, an exchange already under sanctions. OFAC says that the total throughput through the Shelbit network was over $4 billion since May 2024.

The designation highlights the importance of custodial relationships in crypto transactions. The blockchain itself is resistant to seizure, but exchanges, wallet operators, and stablecoin issuers can be traced and sanctioned. This means that businesses and individuals must understand their own wallet exposure before a regulator or counterparty asks questions.