US Sanctions Iranians Over $100M Oil Crypto Transfers/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. Treasury sanctioned Iranian financiers and overseas firms for coordinating $100 million in cryptocurrency transfers tied to Iranian oil sales. Officials say the network laundered funds through front companies in Hong Kong and the UAE to benefit Iran’s government and military. The move comes amid renewed international pressure on Iran over its nuclear program.
Quick Look
- Who’s targeted: Iranian nationals Alireza Derakhshan and Arash Estaki Alivand
- Amount involved: $100 million in cryptocurrency linked to oil sales
- How it worked: Funds moved via front companies in Hong Kong & UAE
- US response: Sanctions authorized under Trump’s February executive order
- Treasury statement: Crackdown aims to disrupt financing for Iran’s weapons programs
- Impact of sanctions: Asset freezes in U.S., business ban for American firms
- Crypto angle: Iran increasingly uses cryptocurrency to evade restrictions
- Global context: Follows EU powers’ reimposition of UN sanctions over nuclear violations
US Sanctions Iranians Over $100 Million in Crypto Transfers From Oil Sales
Treasury crackdown targets Iranian financiers, shadow banking networks, and overseas firms in Hong Kong and UAE The U.S. Treasury Department announced fresh sanctions on Tuesday against two Iranian financiers and a network of companies and individuals across Hong Kong and the United Arab Emirates. The move targets what officials describe as a sprawling “shadow banking” system that used cryptocurrency to funnel over $100 million from Iranian oil sales to benefit the Iranian government and its military programs.
Officials say the network deliberately leveraged crypto transactions and overseas front companies to circumvent international sanctions, marking the latest escalation in Washington’s long-running effort to stifle Tehran’s access to global financial markets.
Who Was Sanctioned?
The Treasury Department identified Alireza Derakhshan and Arash Estaki Alivand, both Iranian nationals, as central figures in the operation. According to U.S. investigators:
- The pair coordinated the purchase of more than $100 million worth of cryptocurrency tied to Iranian oil exports.
- They then routed the funds through a complex web of front companies in Hong Kong and the UAE.
- The system masked the origin of the money, allowing it to bypass traditional banking oversight.
These individuals, along with affiliated firms and associates, now face full U.S. sanctions.
How the Sanctions Work
The penalties fall under a February executive order issued by President Donald Trump — the National Security Presidential Memorandum 2. This order:
- Directs U.S. agencies to “drive Iran’s export of oil to zero.”
- Reaffirms that Iran must never be allowed to acquire nuclear weapons.
- Provides legal authority to freeze assets and cut off sanctioned individuals from U.S. and international financial systems.
The sanctions block access to property and assets held in the United States and prohibit American citizens or companies from doing business with the designated people and firms.
Treasury’s Message
John K. Hurley, the Treasury’s Under Secretary for Terrorism and Financial Intelligence, framed the crackdown as part of Washington’s broader strategy to choke off illicit financing streams.
“We will continue to disrupt these key financial streams that fund Iran’s weapons programs and malign activities in the Middle East and beyond,” Hurley said.
Iran’s Crypto Playbook
Iran, like other heavily sanctioned nations, has increasingly turned to cryptocurrency as a lifeline. Digital assets allow transactions outside of the traditional banking sector, making it harder for regulators to trace and block transfers.
According to Chainalysis, a leading blockchain analysis firm:
- Sanctioned entities and jurisdictions, including Iran, received $15.8 billion in cryptocurrency in 2024.
- That figure represented nearly 39% of all illicit crypto transactions globally.
The U.S. Treasury says operations like the one dismantled this week highlight how Tehran has integrated cryptocurrency into its “shadow banking” networks.
International Context
The sanctions arrive as Iran faces mounting global pressure on several fronts:
- European Action: Earlier this month, France, Britain, and Germany invoked a snapback mechanism that automatically reinstates all United Nations sanctions on Iran. They argue Iran has willfully departed from the 2015 nuclear deal, which initially eased sanctions in exchange for curbs on Tehran’s nuclear program.
- Failed Negotiations: The U.S. and Iran tried earlier this year to revive nuclear talks, but those efforts collapsed after a 12-day Israeli bombardment of Iranian nuclear and military sites in June, followed by U.S. strikes on June 22.
- Regional Fallout: Iran’s support for militant groups in the Middle East and its continued weapons development have fueled further isolation.
Why This Matters
The latest measures reflect several key trends in global geopolitics and finance:
- Cryptocurrency as a Sanctions Loophole
- Iran’s case shows how digital assets can be exploited for state-backed transactions that bypass global restrictions.
- The U.S. and allies now face the challenge of regulating crypto markets without stifling legitimate innovation.
- Pressure on Global Oil Markets
- By choking Iran’s ability to profit from oil exports, Washington aims to limit Tehran’s primary revenue source.
- But this also risks volatility in energy markets, particularly if Iran retaliates by restricting regional oil flows.
- Broader US Strategy Against Iran
- The Trump administration continues to pursue a “maximum pressure” approach, blending financial sanctions with military posturing.
- This keeps the U.S. in direct conflict not only with Iran but also with European allies who favor diplomatic engagement.
Looking Ahead
Analysts warn the U.S. sanctions may only be partially effective. While they limit access to Western financial systems, Iran has long relied on networks in Asia and the Middle East to cushion the blow. The growing use of cryptocurrency adds a new dimension that will require advanced tracking and international coordination.
Still, U.S. officials insist they will continue to “hunt down” shadow banking networks and cut off funding for Iran’s military ambitions. For now, this $100 million crypto crackdown represents another chapter in a prolonged economic war between Washington and Tehran.
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