The U.S. Treasury has taken decisive action against an elaborate network facilitating Iran’s illicit oil sales through cryptocurrency, highlighting a growing challenge in international sanctions enforcement.
US Targets Iran's Crypto-Enabled Sanctions Evasion
The Office of Foreign Assets Control (OFAC) recently imposed sanctions on two Iranian nationals, Alireza Derakhshan and Arash Estaki Alivand, for their pivotal roles in a scheme that funneled over $100 million in cryptocurrency between 2023 and 2025. This sophisticated operation was designed to help Tehran circumvent international restrictions on its oil exports, with funds directly supporting the Islamic Revolutionary Guard Corps–Qods Force (IRGC-QF), a sanctioned military branch. The designations were made under Executive Order 13224, which targets entities materially assisting terrorism-related organizations.
The Network's Operation and Key Players
Alivand, identified as an oil broker and financial facilitator, worked in conjunction with the Syria-based Al-Qatirji Company, a known IRGC-QF associate, to distribute Iranian oil. His activities included arranging crypto payments from Derakhshan's front companies to Al-Qatirji, directly linking digital asset transactions to sanctioned oil sales. Furthermore, Alivand conducted multi-million dollar transactions with Tawfiq Muhammad Sa’id Al-Law, a Hezbollah-linked money changer, providing access to digital wallets for IRGC-QF operations. Derakhshan played a crucial role by establishing and managing front companies in Hong Kong and the UAE, specifically to process these illicit transactions and keep financial flows active despite existing sanctions.
Broader Implications and the Crypto Trend
These designations not only bar Derakhshan and Alivand from engaging with U.S. persons or institutions but also carry the significant threat of secondary sanctions for anyone facilitating their financial activities. The Treasury underscored that Iranian entities increasingly leverage "shadow banking networks" and digital assets to bypass international financial systems. This enforcement action serves as a stark reminder of the escalating trend among sanctioned states, mirroring tactics seen with Russia, to utilize cryptocurrencies as a tool for evading global penalties.
