OFAC Sanctions Iranian Network: $100M in Crypto Linked to Illicit Oil Sales
The U.S. Treasury has sanctioned an Iranian network funneling over $100 million in cryptocurrency from illicit oil sales, benefiting the IRGC-QF and MODAFL. This action targets Iran's "shadow banking" system, leveraging front companies and digital assets.
Central figures Alireza Derakhshan and Arash Estaki Alivand orchestrated these movements since 2023, using shell firms in Hong Kong and the UAE. Links to Hezbollah and Syria’s Al-Qatirji Company, previously sanctioned, were also identified.
OFAC's explicit targeting of blockchain activity signifies a strategic shift, with crypto becoming a parallel channel for discreet cross-border value transfer. Iran converts fiat to stablecoins (USDT, TRX), moves value through intermediary wallets, and off-ramps via exchanges with weak compliance.
The U.S. aims to disrupt financial streams funding Iran's illicit activities, signaling that "digital rails are a growing focus for sanctions."