U.S. Expands Iran Sanctions to Digital Assets in New "Economic Outcast" Push

The U.S. Treasury on Aug. 24 rolled out a new whole-of-government economic pressure campaign dubbed "Economic Outcast," widening sanctions on Iran to explicitly cover the digital asset sector. Acting through the Office of Foreign Assets Control (OFAC) under Executive Order 13902, Treasury said it will now treat Iran's digital asset industry as a sanctionable sector alongside technology, gold, aviation and shipping. Under the expanded framework, any person or company found to operate in, or provide support services to, Iran's digital asset sector can be targeted regardless of where they are located. Treasury said assets of designated parties that fall under U.S. jurisdiction will be frozen. It also warned foreign financial institutions that facilitate significant transactions for sanctioned parties could face restrictions on their U.S. correspondent accounts. In its announcement, Treasury argued Tehran is increasingly turning to cryptocurrency as a preferred channel for sanctions evasion and for transactions tied to Iran's Islamic Revolutionary Guard Corps (IRGC) and regime insiders. As part of the action, OFAC designated Ukrainian broker Ivan Obukhov, described as a United Arab Emirates citizen, along with his company Foscom FZE. Treasury alleged Obukhov has acted as a broker for vessels in Iran's "shadow fleet" and supported Iranian military and proxy oil transport. Since 2023, he is accused of processing more than $100 million in cryptocurrency payments to facilitate oil sales for the IRGC's Qods Force (IRGC-QF), and of helping coordinate vessel acquisitions later used in sanctions evasion. Foscom FZE, a UAE-based firm acquired by Obukhov in 2022, was also sanctioned. Obukhov was designated under Executive Order 13224, as amended, for providing material support to the IRGC-QF. Foscom FZE was designated for being owned or controlled by him. Treasury also added nearly 60 entities, individuals and vessels to the sanctions list, citing links to nuclear and missile procurement, cyber operations and oil revenue networks. Officials framed the move as a shift from targeting isolated exchanges or wallets toward a broader sector-wide approach, raising the risk of secondary sanctions for intermediaries such as exchanges, payment channels and technical service providers. Treasury Secretary Scott Bessent said the campaign aims to cut off "every economic lifeline" supporting Tehran until it is "completely isolated," warning that entities maintaining economic ties with the Iranian regime would face the full reach of U.S. authorities. The Aug. 24 action follows a series of U.S. measures aimed at Iranian crypto channels. OFAC in January 2026 sanctioned UK-registered exchanges Zedcex and Zedxion. In June, Treasury sanctioned four Iranian crypto exchanges including Nobitex, described as Iran's largest platform. On Aug. 7, OFAC designated Shelbit and Aban Tether, saying they facilitated roughly $5 million in Iran-related digital asset transactions. Bessent has also said the U.S. has seized nearly $1 billion in cryptocurrency from exchanges and wallets linked to Iran, and prior actions have included wallet freezes. Treasury said it has mapped networks used to smuggle oil, evade sanctions and finance related activity, and described digital assets as a key alternative rail for Iran as traditional financial channels face tighter restrictions. OFAC said it will continue updating the sanctions list as designations proceed under the expanded authorities.