U.S. Sanctions on Iran Extend to Crypto: Addresses Listed, Exchanges and Accounts at Risk

In the U.S.’s new sanctions package against Iran, crypto assets are also being targeted, with specific digital wallet addresses added to the list and sanctions risks expanded for third parties doing business with Iran.

U.S. Treasury Secretary Scott Bessent announced the new plan to cut off Iran’s revenue sources in a statement on Monday. According to TheBlock, the plan covers digital assets as well as technology, aviation, gold, and maritime shipping. Bessent described the steps as an “economic D-Day.”

The most significant consequence of the plan for the crypto sector is that the scope of sanctions is not limited to individuals and institutions in Iran. The mechanism, which the U.S. defines as secondary sanctions risk, allows for the penalization of third parties doing business with a sanctioned country or actor. Therefore, exchanges, payment providers, and users continuing Iran-linked transactions may face account restrictions.

U.S. Targets Iran-Linked Crypto Addresses

Specific digital asset addresses were also added to the sanctions list on the same day. These addresses refer to wallet identifiers used to send and receive cryptocurrency on the blockchain. The list also included addresses linked to Arman Kahzadian, whom the Treasury said it seized control of a wallet containing more than $30,000 worth of Bitcoin in 2023.

In June, Washington also decided to impose sanctions on Nobitex, which is described as Iran’s largest crypto exchange. The Treasury associated the platform with sanctions evasion, terrorist financing, and transactions linked to the Iranian Revolutionary Guard. Bessent also announced that as of May, approximately $1 billion worth of crypto assets from Iran had been seized.