US sanctions Iran-linked crypto exchanges and shadow banking networks

LONDON: The United States announced sanctions on Friday targeting crypto exchanges and shadow banking networks used by Iran to launder billions of dollars.

The announcements were the latest effort by Washington to squeeze Iran’s finances with its “Economic Fury” campaign, which was launched alongside the joint US-Israeli military operation against Tehran.

The Treasury Department designated two digital asset exchanges and an Iranian man running a network of front companies to facilitate “illicit cryptocurrency activity and sanctions evasion.”

In a separate announcement, the department said it had designated 35 entities and individuals linked to Iran’s shadow banking network.

“The Iranian regime’s reliance on digital assets and shadow banking networks is further evidence that Economic Fury is working,” Treasury Secretary Scott Bessent said.

“We will continue to increase the economic pressure. Whether in dollars, rials, or crypto, Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat.”

The Treasury said the move against the crypto exchanges came after Iran exploited digital currency exchange platforms to transfer huge volumes of assets.

Iranian actors used a network of front companies to obscure the origin of the funds and "laundered the illicit proceeds for the benefit of the Islamic Revolutionary Guard Corps (IRGC) and regime‑connected individuals.”