The U.S. Treasury Department has moved against the A7 Network, a Russian shadow banking operation it says Iran and the Islamic Revolutionary Guard Corps have used to evade sanctions, designating the network a significant transnational criminal organization and proposing a rule that would cut its front companies off from American finance, including in cryptocurrency.

The Office of Foreign Assets Control (OFAC) announced the designation on Thursday, per a Treasury statement, listing the network with addresses in Russia, Kyrgyzstan, Nigeria, and Zimbabwe. The designation formally adds A7 to Treasury's sanctions list, exposing dealings with the network that touch U.S. jurisdiction to penalties. The Financial Crimes Enforcement Network (FinCEN) separately proposed prohibiting U.S. institutions from processing any transfers involving what it calls the network's Sub-Agents—the companies A7 uses to make sanctioned payments look like ordinary trade. The actions were announced October 1 as part of what Treasury has branded Operation Economic Outcast.

The proposed rule covers convertible virtual currency, not just fiat. FinCEN says more than 180 entities moved at least $179.1 billion in the network's ruble-backed A7A5 token between February 2025 and June 2026.

Today, Treasury took unprecedented action against the A7 Network, a shadow banking network with ties to Russia used by the Iranian regime to evade sanctions as part of Operation Economic Outcast. Treasury's @FinCENnews proposed a rule that would prohibit transmittals of funds…

— Treasury Department (@USTreasury) October 1, 2026

FinCEN is acting under section 9714 of the Combating Russian Money Laundering Act, which offers six special measures, and picked the sixth: a transmittal-of-funds prohibition. The fifth, which restricts correspondent accounts, would have left a hole, blockchain intelligence firm TRM Labs noted, based on its research into the network: A7A5 transactions move outside correspondent banking entirely, and FinCEN considers them integral to the business model. The sixth measure reaches fiat and crypto alike, and the proposed rule would bind roughly 348,000 institutions, crypto exchanges among them. For U.S.-linked crypto businesses, the rule would bar handling Sub-Agent-related transfers whether or not any bank sits in the flow.

The A7 Network and A7A5

A7A5 is a ruble-backed token issued by Kyrgyz-registered Old Vector, live on Tron and Ethereum, with deposits held at Promsvyazbank, Russia's state-owned defense bank. FinCEN describes a mirror system: tokens move between addresses inside Russia to represent payments abroad, while Sub-Agents make the matching fiat transfers in dollars, yuan, dirhams, and euros, leaving the two sides firewalled from each other.

More than 180 entities processed at least $179.1 billion in A7A5 between February 2025 and June 2026, FinCEN found—historically almost all of it through the sanctioned exchanges Garantex and Grinex, the latter widely described as a rebrand of the former. Garantex, the original venue, has been under U.S. sanctions since 2022. The token is most often used as a non-freezable bridge into USDT and then fiat. Since a reported hack at Grinex in April, supply has consolidated into unhosted wallets, which the agency reads as a possible move away from sanctioned venues.

On the fiat side, A7 has created or acquired hundreds of Sub-Agents holding accounts at about 435 financial institutions across at least 83 countries, processing more than $17 billion between January 2025 and June 2026. Staff run those accounts from Moscow over custom VPNs that make the activity appear to originate in Dubai, Hong Kong, or Bishkek.

One Sub-Agent dealt directly with entities tied to Iran's shadow fleet of tankers and, together with a sister company, received close to $140 million from firms involved in Iranian sanctions evasion, Treasury said. Another sent about $1.6 million to a company linked to weapons procurement. Treasury also ties the network to Nobitex, the Iranian exchange it designated in June, and to the laundering of proceeds from North Korean exchange hacks.

The network was launched in September 2024 by the fugitive Moldovan oligarch Ilan Shor together with Promsvyazbank, and by January claimed to handle more than 2,000 transactions a day. Its stated historical volume of 7.5 trillion rubles—about $91.5 billion—would equal roughly an eighth of Russia's foreign trade last year. The EU previously sanctioned parts of the network, and the UK's National Crime Agency issued its own alert in August.

If you facilitate illicit finance for America's adversaries, "you will lose access to the U.S. financial system," Treasury Secretary Scott Bessent said.\nThe comment period on the proposed rule closes 30 days after it appears in the Federal Register. Until FinCEN reviews those comments and issues a final rule, the prohibition remains only a proposal.