Treasury Tracks Cryptocurrency Networks to Disrupt Iran’s Sanctions Evasion System

The United States government has ramped up its campaign to prevent Iran from bypassing sanctions, this time by blacklisting an Iranian financial network and several overseas organizations involved in cryptocurrency dealings connected to oil revenues. The Treasury Department’s Office of Foreign Assets Control (OFAC) has named Alireza Derakhshan and Arash Estaki Alivand—both Iranian citizens—along with a group of individuals and companies based in China, Hong Kong, and the United Arab Emirates. These parties reportedly facilitated more than US$100 million in crypto transfers tied to Iranian oil exports between 2023 and 2025, while the larger web of entities handled upwards of US$600 million. According to the Treasury, the operation relied on so-called “shadow banking” structures, including shell companies and crypto laundering, to dodge U.S. and global restrictions.

This crackdown is founded on National Security Presidential Memorandum 2, introduced under President Donald Trump, which set out to bring Iran’s oil exports to zero and block its pursuit of nuclear arms. John K. Hurley, Treasury Under Secretary for Terrorism and Financial Intelligence, stated the U.S. remains resolute in interrupting financial networks that back Iran’s weapons initiatives and destabilizing activity in the region. The sanctions freeze U.S.-based assets of those named and ban American individuals and businesses from working with them.

Iran has increasingly turned to cryptocurrency as a tool to skirt sanctions. Chainalysis data reveals that in 2024, banned regions and organizations—including Iran—received US$15.8 billion in cryptocurrency, making up 39% of global illicit crypto activity. Targeting this particular network highlights the advanced tactics now used for sanction evasion, with Iran combining traditional front companies and digital currencies to mask financial movements. Both Alivand and Derakhshan have also been tied to other previously sanctioned groups, including those linked to Hezbollah and Houthi financial operations, further illustrating the web of connections within these networks.

This action follows rising global tensions and the reactivation of United Nations sanctions on Iran. France, the UK, and Germany triggered a “snapback mechanism” to restore all UN penalties, citing Iranian breaches of the 2015 nuclear pact. At the same time, U.S.-Iran talks around a fresh nuclear deal have stalled since Israel and the U.S. struck Iranian nuclear and military targets in June 2025. The Treasury’s latest sanctions form part of a larger effort to dismantle Iranian financial networks, especially those tied to the Islamic Revolutionary Guard Corps Qods Force (IRGC-QF), which the U.S. has labeled a foreign terrorist organization.

By identifying specific crypto wallet addresses used by Alivand and Derakhshan, the Treasury has shown its enhanced ability to track and disrupt the movement of digital funds. This includes

and wallets linked to Iranian oil dealings and further connections to major Iranian exchanges. By utilizing blockchain’s transparency, enforcement agencies have achieved greater accuracy in targeting intricate financial schemes. The Treasury is continually updating its screening methods to detect and block new parties tied to these illicit networks, indicating a sustained effort to restrict Iran’s ability to finance prohibited activities.