Key facts
- The US Treasury has expanded sanctions to Iran's digital asset sector.
- The sanctions cite over $100 million in cryptocurrency payments for Iranian oil sales.
- A UAE-based Ukrainian broker, Ivan Obukhov, and his company Foscom FZE were sanctioned.
- The move allows the US to sanction foreign individuals and companies supporting Iran's digital asset sector.
- Previous actions targeted specific Iranian crypto exchanges, including Nobitex, Zedcex, Zedxion, Shelbit, and Aban Tether.
The US Treasury has broadened its sanctions against Iran to include its digital asset sector, alleging that over $100 million in cryptocurrency has been used to facilitate oil sales. The Office of Foreign Assets Control (OFAC) issued new determinations covering digital assets, technology, gold, aviation, and shipping, sanctioning nearly 60 entities, individuals, and vessels involved in various illicit networks.
The Treasury stated that Iran increasingly relies on cryptocurrency for sanctions evasion, particularly for transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and government insiders. Specifically, the agency accused UAE-based Ukrainian broker Ivan Obukhov and his company Foscom FZE of processing over $100 million in crypto payments since 2023 on behalf of the IRGC’s Quds Force for oil sales.
This sector-wide measure follows a series of targeted actions against Iranian crypto exchanges and wallets. In January, OFAC sanctioned UK-registered Zedcex and Zedxion, marking its first designations of digital asset exchanges related to Iran. More recently, on June 3, four Iranian crypto exchanges, including Nobitex, were sanctioned. The Treasury also sanctioned Shelbit and Aban Tether on August 7, alleging they facilitated a combined $5 million in digital assets connected to Iran.
The new determination allows OFAC to sanction any foreign individual or company determined to be operating in or providing services to Iran’s digital asset sector under Executive Order 13902. Designated parties face the blocking of US-linked property, and foreign banks facilitating significant transactions for them could face restrictions on accessing US accounts.