It’s tough to cut off a country’s money supply when it’s determined to find new routes. The United States just hit a major network. This group helped Iran move over $100 million from illegal oil sales using cryptocurrencies. These funds directly supported Iran’s military and government, the US Treasury Department reported this week.
The Treasury’s Office of Foreign Assets Control (OFAC) laid down new rules. They targeted two Iranian financiers and more than a dozen people and companies. These players were spread across Hong Kong and the United Arab Emirates (UAE). They funneled money to Iran’s Revolutionary Guard Corps-Qods Force (IRGC-QF) and its Ministry of Defense and Armed Forces Logistics (MODAFL).
Iran’s Shadow Banking Scheme Exposed
Officials say this network operates like a “shadow banking” system. It helps Iran get around global sanctions. They use fake companies overseas and digital currencies to hide their tracks. These funds then help proxy terrorist groups in the region. They also bankroll advanced weapons programs, like ballistic missiles and drones. These weapons put American forces and their allies at risk.
John K. Hurley, the Treasury’s Undersecretary for Terrorism and Financial Intelligence, didn’t mince words. “Iranian groups lean on these shadow banks to dodge sanctions,” he said. “They move millions through the global financial system.” These new actions are part of a larger “maximum pressure” push. This campaign, which started under President Donald Trump, aims to cut Iran’s oil exports to zero. “We will keep messing up these money flows,” Hurley added. “They fund Iran’s weapons and harmful activities.”
Crypto’s Role in Dodging Sanctions
The US government focused on two Iranian nationals: Alireza Derakhshan and Arash Estaki Alivand. These men are accused of buying millions in crypto from government oil sales. From 2023 to 2025, they reportedly used a web of front companies in many places. This included ties to a Syrian company, sanctioned in 2024 for backing the IRGC-QF, and a money exchanger linked to Hezbollah. US agencies did not say which specific cryptocurrencies were used.
Derakhshan also reportedly talked with a sanctioned person. He managed daily business for UAE and Hong Kong firms. These companies handled hundreds of millions of dollars in illegal deals for MODAFL and IRGC. Among the named entities are Alpa Investment L.L.C., Unique Station Trading, Minato Commercial Brokers, and Alliance First Trading L.L.C. They are all accused of helping the IRGC-QF.
The new sanctions mean all property and money belonging to these groups and individuals in the US are now blocked. Americans cannot do business with them. Breaking these rules could lead to big fines or jail time. Plus, foreign banks that help with these transactions could also face penalties.
Digital Rails: A New Sanctions Frontier
Experts are pointing out that cryptocurrencies are changing how sanctions work. Angela Ang, an expert at TRM Labs, noted this to Decrypt. “Iran’s buying networks aren’t just using front companies and bank transfers anymore,” she said. Crypto offers “a side door to move money quickly and quietly across borders.” This is especially true when traditional banks flag suspicious transfers.
Ang believes that sanctioning crypto wallet addresses and “digital rails” sends a clear message. It shows that digital money is a growing target for enforcement. Data from Chainalysis backs this up. In 2024, countries facing sanctions, like Iran, received $15.8 billion in crypto. That’s a hefty 39% of all illegal crypto dealings.
These actions are not isolated. They follow other moves like sanctions on Iranian oil tankers. Israel also recently blocked 187 crypto wallets tied to the IRGC. On top of that, France, the UK, and Germany activated a UN “snapback” mechanism. This means old sanctions on Iran’s nuclear program are back in force. This happened after talks for a new deal fell apart and after Israeli and US bombings in June.
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