U.S. widens Iran crypto crackdown with sanctions on two exchanges
The U.S. Treasury has imposed sanctions on two crypto exchanges, Shelbit and Aban Tether, along with several individuals and entities for facilitating illicit financial transfers for the Iranian regime. These actions are part of an ongoing effort to dismantle shadow banking networks that the U.S. claims are being used to bypass financial restrictions and fund the IRGC.
Why it matters
This move highlights the increasing use of digital assets by sanctioned nations to circumvent global financial systems and underscores the growing pressure on crypto exchanges and stablecoin issuers to enforce international compliance.
The Treasury’s Office of Foreign Assets Control (OFAC) targeted Shelbit Exchange and Iran-based Aban Tether, according to a Friday press release. The agency also sanctioned Siavash Kayvanpour and several companies tied to him in Georgia, Poland and the United Arab Emirates. While the exchange doesn’t appear to be connected to stablecoin issuer Tether, CoinDesk has reached out to Tether to confirm if the exchange is unrelated to the firm.
IRGC-linked wallets sent more than $1 million in crypto to Shelbit addresses while more than $2 million flowed from Shelbit addresses to IRGC wallets, the Treasury said. Wallets belonging to or controlled by Kayvanpour also sent over $2 million to Nobitex, Iran's largest crypto exchange, according to the Treasury.
Aban Tether has processed millions of dollars in transactions involving sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin and Ramzinex, the press release added.
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