The US Treasury Department has sanctioned two Iranian cryptocurrency exchanges, Shelbit and Aban Tether, accusing them of facilitating money laundering and helping sanctioned entities evade US restrictions.

The decision was issued by the Office of Foreign Assets Control (OFAC) within the US Department of the Treasury. The action also targets Iranian national Siavash Kayvanpour, along with multiple firms and cryptocurrency wallets linked to him. According to the Treasury Department, Shelbit is among the firms associated with Kayvanpour.

The move comes amid ongoing tensions between the United States and Iran, which have placed mounting pressure on Iran's financial institutions. Iran has been subject to extensive US sanctions for decades, severely restricting its access to the global banking system and traditional cross-border payment channels such as SWIFT. US officials have increasingly scrutinized cryptocurrency exchange platforms as part of their investigations into the activities of sanctioned entities, as digital assets offer a potential alternative route for moving funds outside the conventional financial system.

Treasury Alleges Crypto Transfer Networks Aided Sanctions Evasion

The US Treasury stated that Shelbit and Aban Tether participated in cryptocurrency transfers connected to Iran's sanctions evasion practices. US authorities allege that these networks helped move digital assets from Iranian entities and wallets linked to the Islamic Revolutionary Guard Corps (IRGC), which was designated by the US as a Foreign Terrorist Organization in 2019.

Treasury Secretary Scott Bessent emphasized that the US government will continue targeting networks that provide financial support to Iran's economy.

"We are going after illicit financial networks in dollars, rials or cryptocurrencies that sustain the Iranian regime," Bessent stated.

The remark underscores the position of US officials who view cryptocurrency as a critical area for financial law enforcement, particularly when digital assets are used to bypass restrictions imposed on banks and traditional financial institutions.

OFAC Identifies Millions in Linked Crypto Transactions

OFAC identified millions of dollars in cryptocurrency transactions tied to sanctioned addresses. According to the agency, wallets associated with the IRGC sent more than $1 million to wallets linked to Shelbit. Separately, wallets associated with Kayvanpour transferred close to $2 million to Nobitex, another cryptocurrency exchange.

OFAC also stated that Shelbit facilitated the transfer of approximately $2 million worth of cryptocurrency to IRGC-linked wallets, illustrating how Iranian cryptocurrency exchanges have been used to move funds between various organizations. The practice of designating specific wallet addresses on OFAC's Specially Designated Nationals and Blocked Persons List has become an increasingly visible enforcement tool, as blockchain transactions are traceable despite operating outside traditional banking infrastructure.

Broadening US Sanctions Strategy

These sanctions form part of a wider US strategy, led by the Treasury Department, to restrict Iran's access to the international financial system. In January, the Treasury sanctioned the crypto exchanges Zedcex and Zedxio. In June, US authorities froze $131 million in cryptocurrency associated with Iran.

Shelbit, Aban Tether, and Kayvanpour represent the latest additions to a growing list of sanctioned exchange platforms, wallets, and entities that US officials believe may be used by sanctioned Iranian actors.

The broader cryptocurrency industry faces intensifying regulatory scrutiny. Digital asset exchanges operating in or connected to sanctioned jurisdictions are expected to monitor suspicious activity and block designated entities. The US Treasury has explicitly indicated that cryptocurrency-related enforcement actions will remain a priority in its efforts to disrupt Iran's financial networks.