The U.S. Treasury Department has intensified its crackdown on Iranian cryptocurrency networks, sanctioning two digital asset exchanges and a key individual accused of facilitating sanctions evasion and money laundering tied to Iran's Islamic Revolutionary Guard Corps (IRGC).

OFAC Designates Shelbit, Aban Tether, and Siavash Kayvanpour

On August 7, the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against two cryptocurrency exchanges — Shelbit and Aban Tether — along with Siavash Kayvanpour, identified by authorities as a central figure in a network of companies engaged in illicit crypto activity.

According to the Treasury, the network enabled the transfer and anonymization of digital assets connected to the IRGC and played a role in sanctions-evasion efforts. IRGC-controlled crypto addresses sent over $1 million to wallets associated with Shelbit, while addresses linked to Shelbit sent more than $2 million back to IRGC-controlled wallets.

Kayvanpour's addresses also transferred over $2 million in cryptocurrency to Nobitex, an Iranian exchange previously sanctioned by the U.S. government. Nobitex has been a recurring enforcement target, having been designated by OFAC in 2022 as part of a broader action against Iran-based illicit financial actors.

The Treasury further alleged that Shelbit processed tens of millions of dollars in digital assets tied to a Persian-language online gambling platform. These transactions were used to obscure the origin of funds, the agency said.

Aban Tether Designated Under Executive Order 13902

OFAC separately designated Iran-based exchange Aban Tether under Executive Order 13902, which authorizes the U.S. government to impose sanctions on entities operating within Iran's financial sector. The executive order, originally issued in January 2020, expanded Treasury's authority to target key sectors of Iran's economy.

The platform reportedly conducted millions of dollars in transactions with previously sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin, and Ramzinex.

Scope and Impact of the Sanctions

Under the designations, all property and interests in property of the sanctioned entities that are controlled by U.S. persons are blocked. Transactions involving those assets are generally prohibited without OFAC authorization or an applicable exemption. The restrictions may also extend to entities owned 50% or more, directly or indirectly, by designated persons.

Treasury Secretary Scott Bessent stated that the department is actively working to disrupt illicit financial networks, regardless of whether they involve traditional currencies or cryptocurrencies.

The enforcement action was linked to an IRS Criminal Investigation. Separately, the State Department's Rewards for Justice program has offered up to $15 million for information that could disrupt the IRGC's financial mechanisms.

The designations add to a growing list of OFAC actions targeting cryptocurrency infrastructure linked to sanctioned jurisdictions, following prior measures against exchanges and mixing services such as Tornado Cash and Garantex. For regulated crypto businesses, the action reinforces the importance of sanctions screening, wallet monitoring, and transaction due diligence, particularly when assessing exposure to high-risk jurisdictions and intermediaries with opaque ownership structures.