The U.S. Department of the Treasury sanctioned eight Canada-based money services businesses on November 6, citing their alleged involvement in cross-border transactions connected to Iran through digital assets. The action targets firms accused of facilitating transactions with sanctioned Iranian cryptocurrency exchanges and with cryptocurrency addresses linked to the Islamic Revolutionary Guard Corps (IRGC), the branch of Iran's armed forces that has been under U.S. sanctions for years. Treasury designations of this kind generally block any property the named parties hold that falls under U.S. jurisdiction and generally prohibit U.S. persons from transacting with them.

According to information reported by Wu Blockchain, the sanctioned businesses include NIA Nations, Million Exchange, Amin Exchange and Farah Exchange. Treasury said several of the firms conducted transactions with sanctioned Iranian crypto exchanges or with cryptocurrency addresses associated with the IRGC.

Allegations Extend Beyond Iran-Linked Transactions

The Treasury's allegations also reach into alleged money laundering. Some of the Canada-based businesses were accused of helping launder drug proceeds for Ryan Wedding, a Canadian trafficker.

According to the reported details, the firms allegedly converted cash connected to drug proceeds into digital assets before transferring the funds abroad. Those transactions formed part of the activities cited in the U.S. sanctions action against the eight money services businesses.

Cash-to-crypto conversion is a core service money services businesses of this kind provide, and in Canada such firms are required to register with the country's financial intelligence agency, FINTRAC, and to meet federal anti-money-laundering reporting obligations. The November 6 action, however, was issued under U.S. sanctions authority rather than by Canadian regulators.

The allegations highlight the role that digital assets can play in cross-border financial transactions, including transfers that authorities associate with sanctioned entities and alleged criminal proceeds. The reported information does not, however, identify which specific firms were involved in each category of activity.

ZachXBT Had Previously Called for Sanctions

The Treasury action also follows earlier public calls for sanctions against Iran-linked over-the-counter (OTC) brokers operating in Canada. OTC desks settle crypto trades outside formal exchange order books, a structure that has appeared repeatedly in recent U.S. sanctions actions tied to Iranian fund flows. Blockchain investigator ZachXBT, known for publicly tracing stolen cryptocurrency and flagging suspicious on-chain activity, said he had called for sanctions against those brokers five months before the Treasury's move.

His earlier appeal and the November 6 sanctions are separate developments, but both relate to concerns over Canada-based financial intermediaries allegedly facilitating transactions connected to Iran through digital assets.

Wu Blockchain reported both the sanctions and ZachXBT's earlier comments. The eight businesses named in the U.S. action include NIA Nations, Million Exchange, Amin Exchange and Farah Exchange.

This article is based on reporting by Wu Blockchain and Hokanews, written by Victoria Hale and published on November 8, 2026.