U.S. Sanctions Target Crypto Exchanges Shelbit and Aban Tether for Evasion of Iran Restrictions

U.S. Sanctions Crypto Exchanges Shelbit and Aban Tether for Evasion of Iranian Restrictions

August 7, 2023

In a significant move to curb Iran’s access to international financial markets, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned two cryptocurrency exchanges, Shelbit and Aban Tether, along with Iranian national Siavash Kayvanpour. The sanctions come amid allegations that these platforms facilitated illicit cryptocurrency transactions and helped Iran evade U.S. sanctions linked to the Islamic Revolutionary Guard Corps (IRGC).

Allegations of Financial Evasion

According to OFAC, IRGC-linked wallets reportedly transferred over $1 million in cryptocurrency to Shelbit addresses. In turn, Shelbit allegedly moved more than $2 million to wallets controlled by the IRGC. Kayvanpour, described as the operator of a network of front companies associated with Shelbit, is also implicated in sending over $2 million to Nobitex, Iran’s largest cryptocurrency exchange.

“Whether in dollars, rials, or crypto, Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat,” stated Treasury Secretary Scott Bessent.

Processing Transactions for Sanctioned Entities

Aban Tether has been accused of processing millions of dollars in transactions for other entities already under U.S. sanctions, including Nobitex, Wallex, Bitpin, and Ramzinex. These exchanges were sanctioned in June for allegedly assisting restricted entities in accessing digital asset markets. Notably, Nobitex accounts for approximately half of Iran’s cryptocurrency trading activity, although it denies any direct ties to the IRGC or the Iranian government.

Shelbit’s Defense

In response to the allegations, Shelbit has rejected claims of knowingly participating in money laundering or sanctions evasion. The exchange’s former management stated that it ceased accepting new business in December 2025 and completed its customer wind-down in January.

Expanding the U.S. Crypto Crackdown

This latest action is part of a broader U.S. campaign targeting exchanges and companies accused of aiding Iran in bypassing financial restrictions amid ongoing military tensions. In July, U.S. authorities froze $131 million in Iran-linked cryptocurrency held in wallets connected to the Iranian central bank. Earlier, Tether froze approximately $344 million in USDT linked to Iranian networks.

Bessent noted that the U.S. has seized or frozen nearly $1 billion in cryptocurrency associated with Iranian exchanges and wallets since the conflict escalated.

Implications for Crypto Firms

The sanctions impose restrictions on U.S. persons and companies from providing funds or services to the designated exchanges and individuals. Furthermore, foreign exchanges and payment providers could face secondary sanctions if they knowingly process transactions involving the sanctioned parties.

As part of the sanctions, OFAC has published several cryptocurrency addresses linked to the designated entities, urging crypto companies to incorporate these identifiers into their transaction-screening systems.

As the U.S. intensifies its scrutiny of cryptocurrency transactions linked to Iran, the implications for crypto firms and exchanges are profound, highlighting the ongoing intersection of digital assets and international sanctions.