The U.S. Treasury Department sanctioned two cryptocurrency exchanges it says helped Iran move money outside the traditional banking system, the latest escalation in Washington's campaign to sever Tehran from global financial markets.
The Office of Foreign Assets Control (OFAC) targeted Shelbit Exchange and Iran-based Aban Tether on Friday, along with Siavash Kayvanpour and several companies tied to him across Georgia, Poland, and the United Arab Emirates.
Tracing the Funds
According to the Treasury, IRGC-linked wallets sent more than $1 million in crypto to Shelbit addresses, while over $2 million flowed from Shelbit back to IRGC wallets. Wallets controlled by Kayvanpour sent an additional $2 million to Nobitex, Iran's largest crypto exchange.
Aban Tether processed millions of dollars in transactions involving sanctioned Iranian exchanges including Nobitex, Wallex, Bitpin, and Ramzinex, the agency said. The exchange does not appear to be affiliated with stablecoin issuer Tether, though CoinDesk has reached out to confirm.
A Growing Campaign
Friday's action extends a sanctions sweep that has now hit at least six crypto platforms connected to Iran in 2026. The Treasury sanctioned Zedcex and Zedxion in January, blacklisted Nobitex and several other exchanges in June, and designated four Iran central bank crypto wallets in July — after which Tether froze roughly $131 million held in those wallets.
"Whether in dollars, rials, or crypto, Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat," Treasury Secretary Scott Bessent said in a statement.
OFAC also designated a separate network of foreign exchange houses and shell companies that helped Iran's shadow banking system move hundreds of millions of dollars, including funds tied to overseas oil sales.
Pressure on Stablecoin Issuers
The expanding sanctions campaign puts increasing pressure on exchanges and stablecoin issuers to identify Iranian-linked funds. Blockchain transactions leave a public trail that investigators and analytics firms can follow, but the volume of designated addresses continues to grow.
For the crypto industry, the message is increasingly clear: compliance infrastructure for sanctioned entity screening is no longer optional, and the pace of designations shows no sign of slowing.