Breaking: OFAC Expands Iran Sanctions to Crypto Sector, Designates UAE Broker Over $100M in Oil-Linked Transfers

WASHINGTON — The Treasury Department’s Office of Foreign Assets Control (OFAC) has expanded its Iran sanctions program to reach Iran’s digital asset sector, designating a United Arab Emirates-based brokerage alleged to have processed more than $100 million in cryptocurrency tied to Iranian oil sales, according to reporting on the action published August 26, 2026.

The designation adds the broker and associated digital wallet addresses to OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List. Under Executive Order 13902 and related Iran authorities, all property and interests in property of designated persons within US jurisdiction are blocked immediately, and US persons are generally prohibited from transacting with them.

Context

OFAC has increasingly published cryptocurrency wallet addresses alongside traditional SDN identifiers, a practice that began with the 2018 designation of Iranian ransomware facilitators and expanded through actions against Chatex, Garantex, and Tornado Cash. Treasury has repeatedly targeted the shadow-banking and exchange networks that convert Iranian petroleum proceeds into usable value, and digital assets have become a recurring channel in those cases.

UAE-based intermediaries have drawn particular scrutiny as jurisdictional waypoints for Iranian oil revenue. Sanctions liability under the International Emergency Economic Powers Act (IEEPA) is strict — no intent or knowledge is required — and civil penalties can reach the greater of roughly $377,700 per violation or twice the transaction value.

Implications

US exchanges, custodians, and virtual asset service providers face immediate obligations: screen customer and counterparty wallets against the newly listed addresses, block any matching property, and file a blocking report with OFAC within 10 business days. Exposure extends to downstream counterparties, because interacting with an address that received funds from a designated wallet can create derivative risk. Firms with UAE corridor activity should expect enhanced due diligence demands from banking partners.

What’s Next

Compliance teams should pull the updated SDN List directly from Treasury and reconcile it against transaction histories. Additional designations targeting related shipping, trading, and exchange nodes are likely.

This content is for informational purposes only and does not constitute legal advice. Consult with a qualified US attorney for guidance specific to your situation.