US Treasury targets Iran’s crypto sector in sanctions push

The U.S. Treasury Department has launched Operation Economic Outcast to target Iran’s international financial links, including cryptocurrency activity that American officials say supports sanctions evasion and the Islamic Revolutionary Guard Corps.

Operation Economic Outcast targets Iran’s financial links

The U.S. Treasury Department said President Donald Trump directed officials to begin Operation Economic Outcast as Washington seeks to cut Iran off from financial networks outside the country.

Under the campaign, Treasury plans to pursue people, companies, and intermediaries that it says help Iran sell oil, move money, avoid existing restrictions, or finance groups designated by the United States. Officials said they had already mapped facilitators, financial channels, and other networks used by Tehran.

“Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe,” Treasury said in its announcement.

The department presented Iran with two possible outcomes: continued isolation or a route back into the international economy. Reintegration, according to Treasury, would require the Iranian government to change conduct that Washington regards as a threat to the United States and its partners.

For foreign companies, Operation Economic Outcast also carries a warning about maintaining commercial ties with Iran. Treasury Secretary Scott Bessent said businesses and governments that work with the United States could benefit from that relationship, while parties that remain connected to Tehran could face similar isolation.

“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”

The campaign follows his earlier declaration of an “Economic D-Day” against Iran, which he described as the financial endgame of the U.S. campaign. Operation Economic Outcast expands that approach beyond Iran’s domestic institutions by focusing on overseas companies, payment channels and facilitators accused of keeping its economy connected to global markets.

US Treasury puts Iran’s crypto sector under scrutiny

Digital assets form a named part of the campaign because the Treasury says Iranian officials and connected groups increasingly use cryptocurrency to conduct transactions outside traditional banks.

According to the department, Iran has turned to crypto for sanctions evasion and for payments linked to the IRGC and government insiders. Treasury did not identify specific wallets, exchanges or transaction amounts in the campaign announcement, but it said the Office of Foreign Assets Control has authority to sanction people operating in the crypto sector of Iran’s economy, regardless of their location.

A person does not become sanctioned solely because the Treasury has announced the campaign. OFAC would still have to designate the person or entity under the relevant U.S. authority, after which any property under U.S. jurisdiction would generally be blocked.

American individuals and companies are generally prohibited from providing funds, services, or other economic benefits to designated parties. OFAC’s rules can also cover entities owned at least 50% by one or more blocked persons, even when the subsidiary or affiliated company does not appear separately on a sanctions list.

For exchanges, custodians, stablecoin issuers and payment providers, a new designation may require updates to wallet-screening systems and customer controls. Non-U.S. companies may also face sanctions exposure when they knowingly facilitate certain dealings involving blocked Iranian parties.

Other industries named by the Treasury include technology, gold, aviation, and shipping. The department said Iran has used international networks in these sectors to sell oil, receive payments, and obtain goods despite U.S. restrictions.

Earlier actions froze Iran-linked crypto funds

Operation Economic Outcast follows several U.S. actions against Iran-linked exchanges, wallets, and companies during 2026.

On Aug. 7, OFAC sanctioned Shelbit, Aban Tether, and Iranian national Siavash Kayvanpour after alleging that they helped move funds connected to sanctioned parties. As crypto.news reported earlier, the Treasury said IRGC-linked addresses sent more than $1 million in cryptocurrency to Shelbit, while wallets connected to the exchange allegedly transferred more than $2 million to IRGC-controlled addresses.

Treasury also alleged that Kayvanpour-linked wallets sent more than $2 million to Nobitex, Iran’s largest crypto exchange. Shelbit’s former management denied knowingly participating in sanctions evasion, terrorism financing or money laundering and said the company stopped accepting new business in December 2025.

OFAC separately accused Aban Tether of processing funds involving Nobitex, Wallex, Bitpin, and Ramzinex. The four Iranian exchanges had been sanctioned in June after U.S. officials alleged that they helped restricted entities use the digital asset market.

In July, U.S. authorities froze $131 million in USDT held across four Tron wallets linked by the Treasury to Iran’s central bank. Treasury confirmed the freeze but did not publicly explain how the funds had been obtained or what transactions the holders intended to conduct.

An earlier April action resulted in approximately $344 million in USDT being frozen across two Tron addresses that American authorities linked to Iranian networks. Tether enforced the restriction through controls built into the stablecoin, leaving the funds immovable without altering the Tron blockchain.

Centralized stablecoins give issuers a direct way to freeze assets held in named addresses. Bitcoin does not contain the same issuer-controlled function, so blocking BTC generally requires control over private keys, cooperation from a custodian, or an exchange account subject to legal restrictions.

Treasury’s actions have also covered alleged Bitcoin use outside Iran’s exchange sector. On July 29, OFAC sanctioned two insurers after accusing HormuzSafe Marine Services Authority of accepting Bitcoin and other digital assets to avoid restrictions and generate revenue for the IRGC.

The public designation did not include wallet addresses, transaction hashes, or payment totals supporting the allegation. It also did not announce a seizure, criminal charge, or court ruling against customers who may have used the company.

Bitcoin holds near $79,000 after testing $80,000

Bitcoin showed little immediate reaction to the Treasury campaign, trading around $79,000 after reaching an intraday high near $80,000. The level remains a psychological barrier after the cryptocurrency’s recovery from prices below $65,000 earlier in August.

Before the Treasury announcement, BTC had come under pressure as Trump escalated a trade dispute with Canada. The president threatened 50% tariffs on Canadian-made vehicles, auto parts and steel beginning Jan. 1, 2027, while Canada said it would respond with tariffs on U.S. goods.

Currency markets reacted more clearly to the two policy developments. Reuters reported that the U.S. dollar index rose 0.17% to 98.99 after the Iran measures and Canadian tariff announcement, while the Canadian dollar fell 0.61% against its U.S. counterpart. Bitcoin later recovered to approximately $78,993, up about 2.1% during the session.