Washington Imposes First-Ever Sanctions on Cryptocurrency Platforms Connected to Iran
In an unprecedented move, the US Treasury has imposed sanctions on two cryptocurrency exchanges registered in the United Kingdom that are connected to Iran's financial infrastructure, representing Washington's inaugural action against digital currency platforms.
The Treasury Department of the United States has imposed penalties on two digital currency platforms with connections to Iran's financial infrastructure, representing an unprecedented instance of Washington directly sanctioning digital asset exchanges under its Iranian sanctions framework.
According to a Friday announcement, the Office of Foreign Assets Control (OFAC) within the Treasury Department indicated the penalties are components of a broader initiative targeting Iranian government officials and networks that stand accused of brutally repressing domestic populations while leveraging alternative financial mechanisms to circumvent international restrictions.
The sanctioned individuals include Eskandar Momeni Kalagari, who serves as Iran's interior minister and has authority over the nation's Law Enforcement Forces.
"Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people,"declared Treasury Secretary Scott Bessent.
OFAC has additionally designated Babak Morteza Zanjani, a prominent Iranian entrepreneur who was previously found guilty of embezzling billions of dollars worth of oil proceeds from Iran's state-owned oil company. The Treasury states that following his release from incarceration, Zanjani was utilized by Iranian authorities to facilitate the movement and laundering of funds, offering financial backing to initiatives associated with the Islamic Revolutionary Guard Corps (IRGC).
US sanctions UK crypto exchanges over Iran links
These penalties represent a significant development through their inclusion of two cryptocurrency exchanges registered in the United Kingdom, specifically Zedcex Exchange Ltd. and Zedxion Exchange Ltd., which American authorities assert are associated with Zanjani and have facilitated substantial transaction volumes linked to IRGC-connected organizations. According to OFAC, Zedcex by itself has facilitated transactions exceeding $94 billion since receiving its registration in 2022.
"This marks OFAC's first designation of a digital asset exchange for operating in the financial sector of the Iranian economy,"stated the Treasury Department.
Bessent charged Tehran with redirecting oil proceeds toward armament initiatives and militant allied organizations rather than providing support to its citizens. He emphasized that the United States would persist in targeting networks that leverage digital currencies to evade sanctions and fund unlawful operations.
In addition to the cryptocurrency-focused designations, OFAC has also imposed sanctions on high-ranking IRGC military commanders and security personnel operating throughout numerous provinces, pointing to documentation of live ammunition attacks against demonstrators, compulsory burials conducted without funeral ceremonies and extensive intimidation tactics designed to suppress opposition.
Iran's central bank used $500 million in USDt to support rial
During the previous week, blockchain intelligence company Elliptic reported that Iran's central banking institution amassed in excess of $500 million in Tether's USDt (USDT) throughout a timeframe characterized by acute economic turmoil, probably deploying the stablecoin to bolster the declining rial or facilitate international commerce settlements.
This accumulation commenced as the national currency depreciated by approximately half its worth over an eight-month span, with Elliptic proposing that the banking institution utilized USDT through domestic exchange platform Nobitex to purchase rials, effectively replicating conventional central bank market interventions but through cryptocurrency channels.