Overview
- The Office of Foreign Assets Control (OFAC) has announced a new determination that allows it to impose sanctions on anyone globally involved in Iran's digital asset sector.
- This measure is part of a broader set of five determinations that also target Iran's financial, technology, gold, aviation, and shipping industries.
- Among the nearly 60 entities designated, a broker is alleged to have facilitated over $100 million in cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC).
The U.S. Treasury has empowered itself to sanction individuals worldwide who engage in Iran's cryptocurrency sector, as part of a campaign referred to as Economic D-Day, announced by Secretary Scott Bessent.
Under Executive Order 13902, OFAC has issued five sectoral determinations covering various industries, including digital assets, which now allows it to designate any foreign entity providing services in this sector, irrespective of their location. This capability mirrors the existing sanctions on Iran's financial and petroleum sectors.
Today, at President Trump’s directive, the U.S. Department of the Treasury has initiated Operation Economic Outcast: a comprehensive governmental economic initiative against the Islamic Republic of Iran and its supporters. https://t.co/bvOAn6GPyP
— Treasury Department (@USTreasury) August 24, 2026
The Treasury Department highlighted that the Iranian regime is increasingly resorting to cryptocurrency to evade sanctions, with transactions linked to the IRGC and other regime insiders.
Bessent described the initiative, officially labeled Operation Economic Outcast, in wartime terms, emphasizing the goal of cutting off all economic support for what he termed a "tyrannical regime" until Iran stands isolated. Countries will be given specific deadlines to cease any Iran-related activities before facing secondary sanctions.
Crypto-Related Sanctions
The list of around 60 identified individuals and entities includes two with direct ties to cryptocurrency activities.
Ivan Obukhov, a Ukrainian residing in the UAE, has reportedly processed over $100 million in cryptocurrency payments since 2023 to facilitate oil transactions for the IRGC's Qods Force. He has a history of brokering shadow fleet vessels and owns the UAE-based company Foscom FZE, which was also designated.
Arman Kahzadian, linked to a group of cyber operatives directed by Iran's Ministry of Intelligence and Security, has been involved in digital asset thefts. According to the Treasury, he acquired control of a Bitcoin wallet containing more than $30,000 in the summer of 2023, a relatively small amount compared to the oil transactions but significant enough to warrant a designation under cyber sanctions.
This action follows previous sanctions against Iranian cryptocurrency activities. OFAC had previously sanctioned the exchange Nobitex for terrorist financing and designated firms accepting Bitcoin for safe passage through the Strait of Hormuz earlier this month.
In response, Iranian officials dismissed the initiative before its implementation. Foreign Minister Abbas Araghchi labeled the U.S. as "desperate," describing its measures as a repetitive strategy that had failed in the past. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, stated that any nation participating in sanctions against Iran would be viewed as an adversary, as the rial hit a record low of 2.02 million to the dollar on that Monday.
On Myriad, a prediction market owned by Dastan, the parent company of Decrypt, traders estimated a 6% chance that Washington would announce an end to the naval blockade on Iranian shipping by August 31, increasing to 43% by the end of September and 76% by year-end.