US Treasury's Office Targeting Iran's Sanctions Evasion Through Bitcoin and USDT

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has officially designated Iran’s digital‑asset sector as sanctionable, extending ongoing enforcement actions against the country’s use of cryptocurrency to evade sanctions.

Scale of Iran’s Crypto Activity

Blockchain analytics firm Chainalysis estimates the Iranian crypto ecosystem was worth about $7.8 billion in the previous year. In the fourth quarter, wallets linked to the Islamic Revolutionary Guard Corps (IRGC) accounted for more than half of on‑chain activity.

USDT Acquisitions by Iran’s Central Bank

Elliptic reports that Iran’s central bank purchased at least $507 million in the stablecoin USDT, with the funds initially moving through Nobitex, the nation’s largest exchange, before being transferred via a cross‑chain bridge after a mid‑2025 hack.

U.S. Enforcement Actions

Since April, the operation known as “Economic Fury” has frozen or sanctioned roughly $1 billion in Iran‑linked crypto assets. Tether blocked $344 million in USDT in April and an additional $131 million in July after OFAC flagged central‑bank wallets holding over $165 million in stablecoins.

In June, OFAC sanctioned the exchanges Nobitex, Wallex, Bitpin, and Ramzinex, as well as two Nobitex executives. On August 24, Treasury Secretary Scott Bessent’s office formally named digital assets a sanctionable sector of Iran’s economy under Executive Order 13902, which allows sector‑wide sanctions.

Broader Context

Iran has turned to crypto to protect the rial, which has lost close to 90 % of its value amid inflation and sanctions. The IRGC uses subsidized electricity to mine Bitcoin, converting power directly into a less traceable currency. The United States continues to target crypto‑based revenue streams, including toll payments for ships transiting the Strait of Hormuz and oil‑related crypto transactions.