The U.S. Treasury sanctioned two Iran-linked crypto exchanges, Shelbit Exchange and Aban Tether, saying they moved money for networks it alleges fund the Islamic Revolutionary Guard Corps. The action extends a string of U.S. measures against Iran's crypto finance network and lands amid the ongoing U.S.-Iran war.
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned Shelbit Exchange and Iran-based Aban Tether, saying the exchanges helped Iran move money outside the traditional banking system. The Treasury said the action targets networks it alleges fund the Islamic Revolutionary Guard Corps (IRGC).
Millions in crypto tied to IRGC wallets
OFAC also sanctioned Siavash Kayvanpour and several companies tied to him in Georgia, Poland and the United Arab Emirates, according to a Friday press release. IRGC-linked wallets sent more than $1 million in crypto to Shelbit addresses, the Treasury said. Separately, more than $2 million flowed from Shelbit addresses back to IRGC wallets.
Wallets belonging to or controlled by Kayvanpour also sent over $2 million to Nobitex, Iran's largest crypto exchange, the Treasury said. Aban Tether, for its part, has processed millions of dollars in transactions involving sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin and Ramzinex.
Aban Tether does not appear to be connected to stablecoin issuer Tether, and CoinDesk has reached out to Tether to confirm if the exchange is unrelated to the firm.
Sanctions widen amid the U.S.-Iran war
OFAC also sanctioned a network of foreign exchange houses, shell companies and individuals it said helped Iran's shadow banking system move hundreds of millions of dollars, including funds tied to overseas oil sales. The designations came as the U.S.-Iran war has raised the stakes of Washington's push to cut Tehran off from foreign currency and global financial markets.
Treasury Secretary Scott Bessent said the campaign is working: "Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat." Cryptocurrencies may give sanctioned entities another route to move funds when banks cut them off, but blockchain transactions can also leave a public trail that investigators can follow.
A string of U.S. measures against Iran's crypto network
Friday's action is the latest in a string of U.S. measures against Iran's crypto finance network. In January, the Treasury sanctioned Zedcex and Zedxion, the first crypto exchanges targeted under its Iran-specific financial sanctions. In June, it blacklisted Nobitex and several other Iranian exchanges.
Last month, the U.S. sanctioned four crypto wallets linked to Iran's central bank. Tether then froze about $131 million held in the wallets. It also sanctioned two Iranian maritime insurance entities over an alleged scheme that funneled funds to the IRGC. The expanding campaign puts pressure on exchanges and stablecoin issuers to identify Iranian-linked funds and block sanctioned entities from moving them.
Source: CoinDesk
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