US Treasury targets crypto exchanges in new Iran sanctions

On Friday, the United States Treasury sanctioned an unlicensed multi-state cryptocurrency exchange, Shelbit, for allegedly processing millions of dollars of cryptocurrency for Iran’s Islamic Revolutionary Guard Corps and other state-linked entities. This move comes in response to a Reuters investigation, published on July 31, which identified Shelbit as a central hub in a $4 billion Iranian sanctions evasion scheme.

The investigation revealed that Shelbit facilitated crypto transactions for Iran’s central bank and addresses linked to the IRGC by the Israeli government.

The Treasury also sanctioned Siavash Kayvanpour, the expatriate Iranian who founded Shelbit, and a network of other companies associated with the exchange. These sanctions aim to target the illicit financial networks that enable the Iranian regime to operate, according to Secretary of the Treasury Scott Bessent. The regime's dependence on digital assets and shadow banking networks further underscores the effectiveness of the ongoing economic pressure.

Treasury officials stated that they will continue to intensify their efforts to dismantle these illicit financial networks, regardless of the currency used, whether dollars, rials, or cryptocurrencies.