U.S. Escalates Crypto Restrictions on Iran With Sanctions Against Two Exchanges

The U.S. Treasury has broadened its sanctions campaign against Iran’s crypto industry, targeting Shelbit Exchange and Iran-based Aban Tether as Washington seeks to restrict Tehran’s access to digital assets and foreign currency.

According to the Treasury Department, the two exchanges helped Iranian entities move funds outside the traditional banking system. The action adds to a wider U.S. effort to disrupt cryptocurrency networks allegedly connected to the Islamic Revolutionary Guard Corps (IRGC).

The Treasury’s Office of Foreign Assets Control (OFAC) announced the sanctions Friday. It also designated Siavash Kayvanpour and several businesses linked to him in Georgia, Poland, and the United Arab Emirates.

Although its name resembles that of stablecoin issuer Tether, Aban Tether does not appear to be affiliated with the company. Tether has been contacted to confirm whether the two organizations have any relationship.

The Treasury said wallets linked to the IRGC transferred more than $1 million in cryptocurrency to Shelbit addresses, while more than $2 million moved from Shelbit addresses to wallets associated with the IRGC. Wallets connected to Kayvanpour also sent more than $2 million to Nobitex, Iran’s largest crypto exchange.

OFAC said Aban Tether processed millions of dollars in transactions involving previously sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin, and Ramzinex.

The Treasury also announced separate sanctions against a network of foreign-exchange businesses, shell companies, and individuals accused of helping Iran’s shadow banking system move hundreds of millions of dollars. Officials said some of the funds were connected to overseas oil sales.

Treasury Secretary Scott Bessent said Iran’s use of crypto and shadow banking channels underscores the need for Washington’s “Economic Fury” campaign. He said the Treasury would continue pursuing illicit financial networks operating through traditional currencies as well as cryptocurrencies.

The latest measures come as the U.S.-Iran conflict adds urgency to Washington’s efforts to isolate Tehran from foreign currency and global financial markets. Although digital assets can give sanctioned entities another avenue for transferring money, blockchain records can also create a trail that investigators and analytics companies can track.

The sanctions are the latest in a series of U.S. actions targeting Iran’s crypto-finance ecosystem.

In January, the Treasury sanctioned Zedcex and Zedxion, becoming the first crypto exchanges targeted under Iran-specific financial restrictions. In June, Nobitex and other Iranian exchanges were added to the sanctions list.

Last month, the U.S. designated four crypto wallets linked to Iran’s central bank. Tether subsequently froze around $131 million held in those wallets. Washington also sanctioned two Iranian maritime insurance companies over an alleged scheme involving transfers to the IRGC.

The expanding campaign is increasing pressure on crypto exchanges and stablecoin issuers to identify Iranian-linked funds and prevent sanctioned entities from using digital assets to transfer money.