On August 24, the U.S. Department of the Treasury launched the "Economic Exclusion Initiative," under Executive Order 13902, expanding sanctions on Iran’s economic sector to include digital assets—any entity deemed to operate in or provide support services to Iran’s digital asset sector, regardless of location, is subject to sanctions.Author: Claude
Source: Schain TechFlow
Overview: On August 24, the U.S. Department of the Treasury launched Operation Economic Outcast, under which OFAC, pursuant to Executive Order 13902, expanded sanctions on Iran’s economic sector to include digital assets, citing Iran’s increasing use of cryptocurrencies as a preferred tool for sanctions evasion. The Treasury accused Ukrainian broker Ivan Obukhov, a citizen of the UAE, of processing over $100 million in cryptocurrency payments since 2023 to facilitate oil sales by Iran’s Islamic Revolutionary Guard Corps-Quds Force, and imposed sanctions on Obukhov and his company, Foscom FZE. Simultaneously, nearly 60 entities, individuals, and vessels were added to the sanctions list.
On August 24, the U.S. Department of the Treasury announced the launch of "Economic Exclusion," describing it as a whole-of-government economic campaign targeting the Iranian regime and its supporters. As part of this action, the Office of Foreign Assets Control (OFAC) issued sectoral sanctions under Executive Order 13902 targeting five key sectors: digital assets, technology, gold, aviation, and shipping.
This decision significantly expands OFAC’s ability to sanction foreign individuals and companies: anyone determined to operate in or provide support services to Iran’s digital assets sector, regardless of location, may be sanctioned. Assets of designated entities related to the United States will be frozen, and foreign banks assisting in significant transactions with them may face restrictions on their U.S. accounts.
The Ministry of Finance stated clearly in its announcement: "The Iranian regime is increasingly using cryptocurrency as its preferred tool for evading sanctions, facilitating transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and insiders within the Iranian regime."
Over $100 million in cryptocurrency payments allegedly supported IRGC oil sales
In this action, OFAC specifically sanctioned Ukrainian broker Ivan Obukhov, a citizen of the United Arab Emirates, and his company, Foscom FZE.
According to a statement from the U.S. Department of the Treasury, Obukhov has long served as a broker for vessels in Iran’s shadow fleet and assisted the Iranian military and its proxies in oil transportation. Since 2023, he has processed over $100 million in cryptocurrency payments to facilitate oil sales on behalf of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). He has also coordinated with others to acquire vessels later used in sanctions evasion activities. Foscom FZE is a UAE company he acquired in 2022 and owns as both shareholder and general manager.
Obukhov was designated pursuant to Executive Order 13224, as amended, for providing substantial assistance, sponsorship, or financial, material, or technological support to the IRGC-QF; Foscom FZE was designated for being owned, controlled, or directed by Obukhov, directly or indirectly.
The Treasury also sanctioned nearly 60 entities, individuals, and vessels related to nuclear and missile procurement, cyber operations, and oil revenue networks.
Departmental sanctions significantly advance the risk of secondary sanctions.
Unlike previous targeted actions against specific exchanges or wallets, the Digital Assets Division has now established a broader sanctions framework. Any foreign entity determined to operate in or provide support services to Iran’s digital assets sector may be added to the sanctions list.
Treasury Secretary Scott Bessent stated in a related statement: “Today, at President Trump’s direction, the U.S. Department of the Treasury has launched Operation Economic Exile... Our goal is to sever every economic lifeline sustaining this authoritarian regime until Tehran is left completely isolated.” He compared the action to an “economic D-Day,” emphasizing that the United States is no longer merely “managing” the threat from Iran, but aims to “end” it.
Bessent also warned that any entity engaging in economic contact with the regime will face the full reach of U.S. authority.
Previous law enforcement actions against Iranian crypto channels
This department-level action is the latest escalation in the United States' ongoing efforts to curb Iran's cryptocurrency channels.
In January 2026, OFAC first sanctioned digital asset exchanges related to Iran, targeting the UK-registered Zedcex and Zedxion. In June, the Treasury sanctioned four Iranian crypto exchanges, including Nobitex, Iran’s largest platform. On August 7, OFAC further sanctioned Shelbit and Aban Tether, stating that together they facilitated approximately $5 million in Iran-related digital asset transactions.
Previously, Treasury Secretary Bessent publicly stated that the United States has seized nearly $1 billion in cryptocurrency from exchanges and wallets linked to Iran. Previous enforcement actions also included freezing specific wallets.
The Ministry of Finance has classified digital assets alongside technology, gold, aviation, and shipping as key sectors Iran is targeting to support its economy, and stated that it has mapped the network nodes Iran uses to smuggle oil, evade sanctions, and fund related activities.
The role of crypto payments in oil and sanctions evasion has been further solidified.
U.S. officials have characterized cryptocurrency as a key alternative pathway for Iran following restrictions on traditional financial channels. The Treasury noted that digital assets have been used to facilitate transactions related to the IRGC and regime insiders, and are linked to activities such as the recycling of oil revenues.
Including the entire digital assets division under Executive Order 13902 means that the threshold for sanctions against foreign intermediaries, exchange service providers, payment channels, and even related technical support providers will be further lowered in the future. Entities designated under this order not only risk having their assets frozen, but their counterparties may also become subject to secondary sanctions.
As of the time of this publication, OFAC has taken designation actions against the relevant entities based on the above decision and continues to update the sanctions list.