OFAC Targets Two Iranian Crypto Finance Facilitators in Shadow Banking Crackdown

U.S. sanctions enforcers just dropped the hammer on Iran's crypto shadow banking network—hitting two key financiers facilitating illicit transactions through digital assets.

Crypto's Double-Edged Sword

Blockchain transparency meets regulatory muscle. OFAC's move exposes how crypto networks get weaponized for sanctions evasion—while simultaneously demonstrating how those same networks get caught.

Finance's New Battlefield

Traditional banking controls push illicit activity into digital channels. Crypto offers pseudo-anonymity and cross-border fluidity—until blockchain forensics and regulatory pressure shut it down.

Another reminder: crypto doesn't break laws—people do. And regulators are getting better at finding them. Maybe Wall Street could take notes—unlike their 'too big to fail' protocols, this enforcement actually works.

OFAC Sanctions Iranian Nationals

According to the Tuesday press release, Iranian nationals Alireza Derakhshan and Arash Estaki Alivand “used a network of front companies in multiple foreign jurisdictions” to transfer the digital assets.

OFAC alleges that Alivand and Derakhshan’s transfers also involved the sale of Iranian oil that benefited Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL).

IRGC-QF and MODAFL then used the proceeds to support regional proxy terrorist organizations and strengthen their advanced weapons systems, including ballistic missiles.

U.S. officials say the MOVE targets shadow banking in the region, where illicit financial actors use overseas money laundering and digital assets to evade sanctions.

“Iranian entities rely on shadow banking networks to evade sanctions and move millions through the international financial system,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley.

“Under President Trump’s leadership, we will continue to disrupt these key financial streams that fund Iran’s weapons programs and malign activities in the Middle East and beyond,” he continued.

Dozens Designated In Shadow Banking Scandal

Both Alivand and Derakhshan have been designated “for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of the IRGC-QF.”

In addition to Alivand and Derakhshan, OFAC has sanctioned more than a dozen Hong Kong and United Arab Emirates-based entities and individuals tied to the network.

According to the press release, the sanctioned entities may face civil or criminal penalties imposed as a result.