OFAC sanctions Iranian crypto network for $100M laundering
On September 17, 2025, the US Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on two Iranian facilitators and their front companies for laundering over $100M in illicit oil sale proceeds via cryptocurrency. The OFAC sanctions target Ali Derakhshan (Alireza Derakhshan) and Payam Alivand (Arash Estaki Alivand) and front firms in Hong Kong and the UAE, including Alpa Trading and Alpa Hong Kong Limited. They also include Hezbollah-linked launderer Tawfiq Muhammad Sa’id al-Law and currency exchanger Ramin Jalalian. The network processed more than $600M in digital assets across ETH and TRX wallets. These measures disrupt IRGC-QF, MODAFL and allied groups’ funding channels. Traders should monitor the sanctioned ETH and TRX addresses and prepare for tighter cryptocurrency compliance and increased blockchain transparency.
Bearish
Sanctions on major ETH and TRX addresses reduce liquidity and deter institutional interest. In the short term, traders may sell affected tokens to avoid compliance risks, triggering price drops. Over the long term, enhanced blockchain transparency and stricter cryptocurrency compliance could limit illicit flows and shift demand, but may also raise operational costs for exchanges and traders. Historical precedent suggests that regulatory actions against crypto networks often lead to bearish pressure on targeted tokens while the broader market adjusts to new compliance regimes.