The U.S. Treasury Department's Office of Foreign Assets Control imposed sanctions on two Iranian crypto exchanges, Shelbit and Aban Tether, for their alleged role in laundering millions of dollars linked to the Islamic new Guard Corps and helping Tehran evade U.S. penalties.
The Treasury Department said the sanctions reflect its commitment to preventing the abuse of digital assets by malign actors. Senior officials have repeatedly warned that crypto platforms must implement anti-money laundering and counter-terrorist financing controls to avoid U.S. penalties. The IRGC, designated a foreign terrorist organization by the United States in 2019, relies on covert methods to fund its operations, weapons procurement and proxy groups.
Shelbit and Aban Tether allegedly processed substantial transactions that bypassed international financial safeguards, providing financial services to sanctioned individuals and entities. The sanctions aim to cut off a critical avenue for the IRGC to move funds globally, circumventing traditional financial institutions.
Under the sanctions, all property and interests in property belonging to Shelbit and Aban Tether that are within the United States or in the possession or control of U.S. persons are blocked. U.S. persons are generally prohibited from engaging in any transactions with the two exchanges, effectively isolating them from the global financial system.
The Treasury Department said it will continue to monitor the digital asset ecosystem for illicit activity and potential vulnerabilities, with further enforcement actions expected against entities facilitating sanctions evasion through crypto.
