US targets Iran crypto sector over alleged $100 million oil payments

The US Treasury expanded its Iran sanctions framework to cover the country's digital asset sector. The Treasury cited more than $100 million in crypto payments allegedly used to facilitate Iranian oil sales. The Treasury alleged that UAE-based broker Ivan Obukhov processed the payments since 2023 for the IRGC's Quds Force. OFAC sanctioned Obukhov and his UAE-based company, Foscom FZE. On Monday, OFAC issued sectoral sanctions determinations covering digital assets. The determinations also cover technology, gold, aviation and shipping. The Treasury sanctioned nearly 60 entities, individuals and vessels across nuclear, missile, cyber and oil networks. The digital asset determination allows OFAC to sanction foreign individuals and companies that operate in or provide services supporting Iran's digital asset sector. The Treasury said Iran increasingly uses crypto as a tool of choice for sanctions evasion. The Treasury linked that activity to transactions involving the IRGC and Iranian government insiders. In January, OFAC sanctioned UK-registered exchanges Zedcex and Zedxion. Those were OFAC's first Iran-related designations of digital asset exchanges. On June 3, the Treasury sanctioned four Iranian crypto exchanges, including Nobitex, which the Treasury called Iran's largest platform. Treasury Secretary Scott Bessent said the US had seized nearly $1 billion in cryptocurrency from Iranian exchanges and wallets. On Aug. 7, OFAC sanctioned Shelbit and Aban Tether. OFAC alleged that the exchanges facilitated a combined $5 million in digital assets connected to Iran. The latest determination provides a basis for sanctions against foreign individuals and companies that participate in Iran's wider digital asset sector. The Treasury said the determination significantly expands its ability to sanction those parties. The accompanying OFAC determination places any person found to operate in Iran's digital asset sector under sanctions pursuant to Executive Order 13902. Designated parties must have their US-linked property blocked. Foreign banks that facilitate significant transactions for designated parties could face restrictions on access to US accounts.