Tuesday, January, 21, 2025

OFAC Sanctions Iranian Interior Minister and IRGC-Linked Crypto Exchanges

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Anny Sam

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  • The United States expanded sanctions against senior Iranian officials for violent repression.
  • Treasury targeted a powerful financier and two digital asset exchanges tied to the IRGC.
  • The move signals stronger pressure on Iran’s shadow finance networks.

According to the report, the U.S. Department of the Treasury took fresh action today against Iranian officials linked to widespread abuse of civilians. The Office of Foreign Assets Control (OFAC) expanded its sanctions list to include figures who direct security forces and financial networks.

The decision follows months of unrest and a sustained crackdown across Iran. Treasury framed the move as support for the Iranian public and a warning to elites who profit from repression. Treasury named Eskandar Momeni Kalagari, Iran’s Minister of the Interior, as a central target.

He oversees domestic security bodies and directs the Law Enforcement Forces. These units played a key role in lethal operations against peaceful demonstrators. Reports describe mass arrests, disappearances, and killings across several provinces. OFAC also sanctioned senior commanders tied to the Islamic Revolutionary Guard Corps. These leaders supervised violent responses in Tehran, Hamadan, Gilan, and Kermanshah.

OFAC Blocks Assets Linked to IRGC Funding

These security units used live ammunition to shoot the crowds. There was pressure for families to bury the dead quietly. The securities were also demanded for payment for the bodies, which were withheld by the authorities.

There was also a communication blackout by the government to reduce the visibility and organization of the public. The Treasury used its authorities, which cover human rights abuses and terrorism, to make these designations. There was a statement from the officials that accountability was central to U.S. policy. This action blocks property and assets in the U.S. and prohibits dealings with U.S. persons.

This action also extends to the financial networks of Iran. OFAC designated Babak Morteza Zanjani, a businessman. He has a history of evading sanctions. He previously managed oil revenue and never returned it to the public treasury. Upon release from prison, he returned to business, financing infrastructure projects.

There was a connection between him and support for the IRGC. This is the first action by OFAC, which designates digital asset exchanges operating within the Iranian financial sector. Zedcex Exchange and Zedxion Exchange processed high transaction volumes related to the IRGC-linked wallets. There was also evidence from the investigation, which used addresses related to these exchanges.

Treasury Tightens Oversight of Crypto Channels

These exchanges were said to be conduits for money laundering and sanctions evasion. This is a move towards more scrutiny of cryptocurrency channels being employed by state-linked actors. Treasury stated, “Sanctions have a specific purpose: to change behavior.” This is a campaign against the misuse of oil revenues, terror financing, and cyber activities.

In 2025, hundreds of individuals, vessels, and aircraft were added to the list by OFAC alone. The United States is also highlighting support for internet access within Iran. Existing licenses allow for technology services that assist civilians in communicating during shutdowns. Faster guidance and licensing will be provided, according to Treasury.

All blocked property within the control of the United States will be frozen in place. This also extends to restrictions on entities that are owned by designated persons. These violations will incur civil and criminal consequences. The Treasury warns global firms and banks not to get involved, as repression and corruption will cost them more.

Read More: Metaplanet Lifts Bitcoin Income Forecast to ¥8.6B After Strong Q4 Results

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