The US Treasury's Office of Foreign Assets Control on Thursday sanctioned two cryptocurrency exchanges and an individual, accusing them of laundering $5 million in digital assets tied to Iran. The move freezes any US-held assets and bars US persons from transacting with the targets.
The accusation
The Treasury said the exchanges and the individual facilitated money laundering on behalf of Iranian actors. The alleged scheme moved $5 million in digital assets, though the Treasury didn't detail the specific transactions. The action adds the three to the Specially Designated Nationals list.
What the sanctions do
Being on the SDN list means US banks must block any assets the targets hold. US individuals and companies are barred from doing business with them. Violations can lead to civil penalties or criminal charges. The sanctions take effect immediately.
The Iran link
Iran has been under sweeping US sanctions for years. The Treasury has repeatedly targeted crypto platforms that help sanctioned nations move money. Thursday's action is the latest in that effort, hitting two exchanges and one person for allegedly shifting funds linked to Iran.
It's not clear which exchanges were sanctioned or how they plan to respond. The Treasury's announcement didn't include details on the individual's identity. For US users of the affected platforms, access is now off limits.
