US Treasury’s Office Targeting Iran’s Sanctions Evasion Through Bitcoin and USDT
The US Treasury’s Office of Foreign Assets Control (OFAC) has labeled Iran’s digital asset sector as sanctionable, formalizing years of enforcement towards Tehran’s sanctions evasion utilizing Bitcoin (BTC) and the stablecoin Tether (USDT).
Blockchain analytics agency Chainalysis estimates Iran’s crypto ecosystem topped $7.8 billion final 12 months. Wallets tied to the Islamic Revolutionary Guard Corps (IRGC), Iran’s major army department, accounted for greater than half of on-chain exercise within the fourth quarter.
Central Bank’s USDT Reserve Powers Sanctions Evasion
Blockchain analytics agency Elliptic reported that Iran’s central bank acquired at least $507 million in USDT, tracing the purchases to leaked 2025 paperwork. Most of the stablecoin flowed by way of Nobitex, the nation’s largest change, earlier than shifting to a cross-chain bridge after a mid-2025 hack.
Researchers describe the setup as a sanction-resistant reserve constructed exterior the normal greenback system to defend the rial, which has misplaced near 90% of its worth amid inflation and sanctions.
Washington Escalates Freezes and Sector-Wide Sanctions
Since April, Operation Economic Fury has frozen or sanctioned roughly $1 billion in Iran-linked crypto. Tether blocked $344 million in USDT that month. It froze another $131 million in July after OFAC flagged central financial institution wallets holding over $165 million in stablecoins.
In June, OFAC additionally sanctioned the exchanges Nobitex, Wallex, Bitpin, and Ramzinex, together with two of Nobitex’s executives.
On August 24, Treasury Secretary Scott Bessent’s workplace formally named digital property a sanctionable sector of Iran’s economic system. The designation depends on Executive Order 13902, which lets OFAC sanction complete financial sectors fairly than particular person entities.
The identical package deal, dubbed Operation Economic Outcast, additionally sanctioned a Ukrainian dealer for routing crypto oil funds. OFAC mentioned he processed over $100 million tied to grease gross sales for the IRGC’s Quds Force, its international paramilitary arm.
“Our goal is to sever each financial lifeline that sustains this tyrannical regime till Tehran stands alone.”
— Bessent
Iran has additionally used crypto to charge tolls for ships passing by way of the Strait of Hormuz. The IRGC depends on sponsored electrical energy to mine bitcoin, changing energy instantly into forex that’s more durable to hint.
As blockchain analytics enhance, the standoff between Tehran’s stablecoin workarounds and Washington’s freezing powers seems set to proceed.
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