Treasury Expands Sanctions Authority Over Global Crypto Operators Supporting Iran
The U.S. Treasury has granted itself the power to sanction any cryptocurrency operator worldwide that supports Iran's regime, marking a significant expansion of American economic enforcement.
Unprecedented Sectoral Crypto Authority
The U.S. Treasury Department has dramatically expanded its ability to enforce sanctions against Iran by issuing a new sectoral determination covering the digital asset industry. Through the Office of Foreign Assets Control, Treasury can now designate any foreign person operating in or providing services to Iran’s cryptocurrency sector, regardless of their location worldwide. This represents the first time such comprehensive authority has been extended to the digital assets space, previously limited to Iran’s financial and petroleum industries.
The determination was announced as part of what Treasury Secretary Scott Bessent has termed “Economic D-Day,” formally known as Operation Economic Outcast. The campaign, initiated at President Trump’s direction, simultaneously issued sectoral determinations across five critical economic sectors: digital assets, technology, gold, aviation, and shipping. Treasury officials framed the objective to systematically cut off every economic pathway sustaining Iran’s government until the regime stands isolated internationally.
Targeting Crypto Facilitators and Cyber Operatives
The initial enforcement action named approximately 60 entities, individuals, and vessels, with two drawing particular attention for their cryptocurrency involvement. Ivan Obukhov, a Ukrainian national based in the United Arab Emirates, was designated after Treasury determined he has processed more than $100 million in cryptocurrency payments since 2023. These funds facilitated oil sales on behalf of Iran’s Islamic Revolutionary Guard Corps Qods Force, according to the Treasury announcement. Obukhov also owns Foscom FZE, a UAE-based firm that was jointly designated.
In a separate designation, Arman Kahzadian was sanctioned for acting as a cyber operator directed by Iran’s Ministry of Intelligence and Security, specializing in digital asset theft operations. Treasury alleged he obtained control of a cryptocurrency wallet holding over $30,000 in Bitcoin during summer 2023, illustrating Iran’s reliance on cyber operations as an economic strategy.
Escalating Sanctions on Crypto-Enabled Evasion
Treasury officials emphasized that Iran has progressively shifted toward cryptocurrency as its primary mechanism for circumventing international sanctions and financing prohibited activities. The new sectoral determination represents a substantial escalation in American enforcement capabilities, building on prior actions including sanctions against cryptocurrency exchange Nobitex over terrorist financing connections and designations against firms facilitating payments linked to Iran’s strategic shipping corridors.
Individual countries will be assigned specific timelines to terminate Iran-related operations before secondary sanctions may apply, extending enforcement reach across international markets. The sweeping nature of this sectoral authority effectively grants the U.S. government power to designate virtually any global cryptocurrency participant engaged with Iran’s digital asset ecosystem. For crypto markets, this expansion signals that regulatory oversight will intensify as governments strengthen tools to combat sanctions evasion.
Source: U.S. Treasury Department, via Decrypt. Not financial advice.