US sanctions Iran’s largest crypto exchange over IRGC links

The U.S. government has just announced a new package of sanctions targeting Iran’s cryptocurrency sector, most notably focusing on Nobitex—the country’s largest cryptocurrency exchange. Washington alleges that this platform has assisted the Iranian government, as well as entities on Western sanctions lists—including the powerful Islamic Revolutionary Guard Corps (IRGC)—in evading international embargoes.

The announcement, issued by the U.S. Department of the Treasury on June 2, marks a new escalation in the campaign to exert economic pressure on Iran. According to U.S. authorities, Nobitex has played a central role within a financial network, enabling sanctioned entities and individuals to access the global financial system through digital assets.

These new sanctions were announced following a Reuters investigation revealing that Nobitex had become a critical link in processing transactions worth millions of dollars for Iran’s Central Bank and the IRGC. The report stated that the exchange continued to operate even during periods when the Iranian government imposed major nationwide internet shutdowns, thereby allowing the flow of digital funds to persist despite these restrictions.

According to the U.S. Department of the Treasury, Nobitex has provided “significant support” to the Iranian government by facilitating digital asset transactions involving sanctioned entities. Washington asserts that, amidst the heavy pressure placed on Iran’s economy by international sanctions, the Tehran government is increasingly leveraging blockchain technology and cryptocurrencies as a tool to transfer assets, safeguard financial reserves, and sustain cross-border economic activities.

U.S. Treasury Secretary Scott Bessent stated that the Iranian government has chosen to exploit digital asset technology to serve objectives that Washington deems to be sanctions evasion and the offshore transfer of assets. According to him, this is occurring while Iran’s economy faces severe difficulties.

In addition to Nobitex, the U.S. has also imposed sanctions on several key executives and shareholders of the exchange. The list includes CEO Amir Hossein Rad, along with two brothers from the Kharrazi clan—a family wielding significant influence within Iran’s political and religious spheres. According to corporate records analyzed by Reuters, these individuals are alleged to hold controlling roles or exert substantial influence over Nobitex’s operations.

This latest move is not limited to a single enterprise. The U.S. Treasury Department has simultaneously added three other Iranian cryptocurrency exchanges to its sanctions list: Bitpin, Ramzinex, and Wallex. Washington has warned that foreign financial institutions or individuals could face secondary sanctions if they engage in certain transactions with these platforms.

U.S. officials assert that Iran’s cryptocurrency sector has expanded rapidly in recent years, driven by the effects of inflation, the depreciation of the rial, and restrictions on access to the international banking system. For many Iranians, cryptocurrencies have become a means of preserving wealth. However, Washington contends that, simultaneously, state-affiliated entities and sanctioned networks are exploiting this technology to conduct international transactions beyond the oversight of the traditional financial system.

Nobitex is regarded as Iran’s largest cryptocurrency trading platform. Reports indicate that the exchange is projected to handle more than half of the total digital asset trading volume in this Middle Eastern nation in 2025. With millions of users, Nobitex holds a dominant position in the domestic crypto market, serving as a gateway connecting Iranian investors to the global digital asset market.

For its part, Nobitex has denied the U.S. allegations. In previous statements provided to Reuters, the company asserted that it has no direct ties to the Iranian government and does not facilitate any illicit activities. Nobitex stated that if any illicit funds have flowed through its system, this occurred without the knowledge or approval of its leadership. The company also denied allegations regarding the concealment of identities or the use of aliases by its founders.

The U.S. action reflects a growing focus on the cryptocurrency sector within the realm of international sanctions enforcement policy. Historically, sanctions measures have typically targeted banks, shipping firms, energy companies, or individuals linked to sanctioned regimes. However, the rapid advancement of blockchain technology has posed new challenges for regulators, as digital assets can be transferred across borders at high speeds with minimal reliance on traditional banking infrastructure.

Analysts suggest that the new measures could make cryptocurrency trading in Iran more difficult in the short term, particularly as international partners will have to weigh legal risks before engaging with sanctioned platforms. However, the actual effectiveness of such sanctions remains a subject of debate, given that blockchain technology is inherently designed to operate globally and does not rely entirely on a single central authority.

Amidst tensions between the U.S. and Iran that show no signs of abating, the decision to target Nobitex indicates that the digital finance sphere is emerging as a new battleground in the geopolitical rivalry between the two nations. As cryptocurrencies play an increasingly significant role in the global economy, governments are stepping up efforts to regulate and monitor this sector in order to thwart activities they deem to pose a threat to national security and the efficacy of international sanctions.