Iran's Crypto Transactions Under US Sanctions Spotlight

By: Eliza Bennet

The United States Treasury Department has taken decisive action against two Iranian nationals, Alireza Derakhshan and Arash Estaki Alivand, in a move to clamp down on crypto transactions aiding Iran's oil sales in violation of international sanctions. The Office of Foreign Assets Control (OFAC) made the announcement on September 16, designating these individuals under Executive Order 13224, which targets individuals and entities supporting terrorist activities. Derakhshan and Alivand have been pinpointed as key players in managing a network that facilitated over $100 million worth of crypto transactions from 2023 to 2025.

These transactions were reportedly orchestrated to support illicit oil trade and to finance operations related to the Islamic Revolutionary Guard Corps–Qods Force (IRGC-QF), one of Iran's most heavily sanctioned military bodies. Using a web of front companies spanned across multiple jurisdictions, the pair managed to obscure fund movements that directly benefited Tehran’s oil-for-crypto strategy. Notably, Alivand collaborated with the Syria-based Al-Qatirji Company, a long-standing accomplice in distributing Iranian oil, demonstrating direct involvement in sanction-breaching activities.

Furthermore, Alivand engaged in significant transactions with Tawfiq Muhammad Sa’id Al-Law, a money changer with known ties to the Hezbollah militia, providing access to digital wallets used for transferring funds linked to IRGC-QF. Parallelly, Derakhshan’s operations stretched across Hong Kong and the UAE, facilitating transactions for Iranian enterprises already flagged under international sanctions. This infrastructure enabled Iran to persist with oil trade endeavors despite multiple layers of fiscal restrictions.

John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized the crucial role shadow banking networks play for Iranian entities in evading sanctions while maintaining a presence in global financial systems. The action against these individuals and their affiliates underscores a broader pattern of using cryptocurrencies as a means to bypass traditional financial channels, a practice similar to tactics employed by Russia post-Ukraine invasion to circumvent Western sanctions. Consequently, any US institution or person found liaising with these sanctioned entities could face similar punitive measures, amplifying the ongoing scrutiny on crypto's role in geopolitical maneuvers.