On August 24, the U.S. Department of the Treasury launched Operation Economic Outcast, which includes digital assets among sectors facing expanded secondary sanctions from the Office of Foreign Assets Control (OFAC).
OFAC issued five sectoral definitions under Executive Order 13902, targeting cryptocurrencies, technology, gold, aviation, and shipping.
The agency stated that it can impose sanctions on foreign individuals regardless of their jurisdiction if they operate in these sectors of the Iranian economy or provide services to them.
The U.S. Treasury linked cryptocurrency payments to sanction evasion and transactions benefiting the Quds Force of the Islamic Revolutionary Guard Corps (IRGC) and entities close to the Iranian authorities. The agency specifically warned that assisting in money laundering or circumventing restrictions for Iran might result in losing access to the U.S. financial system.
OFAC Targets Companies, Individuals, and Entire Industries
Simultaneously, OFAC sanctioned nearly 60 companies, individuals, and vessels across various jurisdictions. According to the agency, the measures affected networks involved in procuring technology for nuclear and missile programs, a group linked to Iran’s Ministry of Intelligence and Security, as well as brokers, firms, and vessels in a shadow fleet transporting Iranian oil and facilitating revenue to state-affiliated entities.
The Treasury specifically mentioned freight broker Ivan Obukhov. According to OFAC, this Ukrainian citizen residing in the UAE processed cryptocurrency payments exceeding $100 million since 2023 to facilitate oil sales for the Quds Force. Another individual, Arman Kahzadian, reportedly gained control over a Bitcoin wallet valued at over $30,000 during the summer of 2023.
Additionally, OFAC suspended several general licenses that permitted certain money transfers to Iran and access for Iranian parties to the U.S. cultural and academic system. The agency also issued clarifications regarding sanction risks for shipping operations in the Strait of Hormuz.
The new definitions complement existing sectoral measures against Iran's financial, oil, and petrochemical industries. Earlier in August, OFAC added the cryptocurrency exchanges Shelbit and Aban Tether to its sanctions list, accusing them of laundering funds for the IRGC.
It is worth noting that in July, Tether froze $131 million in USDT across four addresses allegedly linked to Iran's central bank.