U.S. Broadens Sanctions Reach to Iran's Digital Asset Industry

The U.S. Treasury has expanded its sanctions toolkit to explicitly cover Iran's digital asset industry, giving the Office of Foreign Assets Control (OFAC) a new basis to designate people and firms tied to the country's cryptocurrency sector. In an announcement dated August 24, Treasury said Iran's digital assets industry is now captured under Executive Order 13902, alongside additional sectors including technology, gold, aviation, and shipping. The move was unveiled in parallel with coordinated actions aimed at Iran's nuclear, missile, cyber, and oil networks. The designation does not automatically place every crypto company serving Iranian users on the sanctions list. It does, though, authorize OFAC to act against individuals and businesses it determines are operating in Iran's digital assets industry or providing support services to that industry, regardless of where they are incorporated or operate. Treasury said the activity involved exceeded $100 million. It named Ivan Obukhov, described as a Ukrainian broker based in the UAE, alleging that since 2023 he processed more than $100 million in cryptocurrency payments connected to oil sales linked to Iran's Islamic Revolutionary Guard Corps' Quds Force. Foscom FZE, a company Treasury said is owned and managed by Obukhov, was also added to the sanctions list as an entity used for related brokerage activity. The announcement did not provide onchain addresses, transaction hashes, token breakdowns, or specific counterparties. As a result, the $100 million figure remains a U.S. government allegation without publicly available blockchain details to independently verify it. The changes raise compliance risks for non-U.S. platforms and service providers. Under U.S. sanctions rules, property and interests in property of designated persons that are in the United States or in the possession or control of U.S. persons are blocked. Entities owned 50% or more by one or more sanctioned parties may face the same restrictions. U.S. persons are generally prohibited from dealing with sanctioned parties, and foreign financial institutions that knowingly facilitate significant transactions for them risk losing access to U.S. correspondent or payable-through accounts. Treasury's action signals that exposure is not confined to Iran-based exchanges: overseas brokers, payment processors, wallet operators, and technology service providers could also be pursued. OFAC has already targeted Iran-linked crypto platforms several times in 2026, including Nobitex, Wallex, Bitpin, Ramzinex, Shelbit, and Aban Tether. On August 7, Treasury accused Shelbit and Aban Tether of processing about $5 million in transactions involving restricted Iranian platforms and other blocked parties. Unlike earlier cases focused on specific exchanges and transaction flows, the new industrywide approach broadens the legal foundation for future designations.