U.S. sanctions crypto exchanges for laundering Iranian military assets

Aug. 7 (UPI) -- The Trump administration on Friday sanctioned a multinational network of crypto exchanges that authorities say Iran has been using to launder billions of dollars to fund its military.

The sanctions target United Arab Emirates-based Shelbit Exchange, which authorities say has been laundering money by running it through a large gambling website on behalf of the Iranian government.

The move comes as retaliation for Iranian attacks again commercial vessels in the Strait of Hormuz this week, State Department officials said.

Treasury officials said Iran uses a sprawling network of corporate entities to obscure the origin of the funds and launder money to benefit the Islamic Revolutionary Guard Corps.

"The Iranian regime's reliance on digital assets and shadow banking networks is further evidence that Economic Fury is working," said Treasury Secretary Scott Bessent, in a statement, referencing the government's operations to target Iran's funding network.

The executive who runs the operations, Iran-born expatriate Siavash Kayvanpour, has also been sanctioned.

Kayvanpour's network of crypto exchanges allegedly includes operations in the Republic of Georgia and Poland, as well as other outfits in the UAE.