US Treasury Sanctions Iran Network; $1B Crypto Assets Frozen

The U.S. Treasury (via OFAC) sanctioned nine Iran-linked individuals and entities tied to weapons procurement for the IRGC and Iran’s MODAFL. The action is part of the “Economic Fury” campaign and follows earlier steps that froze about $1B in Iran-related cryptocurrency. New designations focus on China- and Hong Kong-based intermediaries accused of helping Iran obtain weapons and move funds through overseas procurement and financial networks. Named targets include Liu Boyu and several entities connected to Mustad Limited/ Mustad Shanghai International Trade Co Ltd, which Treasury says attempted to facilitate payments for IRGC weapons procurement. Other sanctioned parties include Domus Trading HK Limited and Solos International Limited (Meng Shaopei), accused of supporting MODAFL defense acquisitions. Treasury also highlights broader pressure on Iran’s financial infrastructure, including shadow banking networks and sanctions evasion tied to oil, maritime activity, and proxy financing. It warns that sanctions exposure may extend to payments for “safe passage” through the Strait of Hormuz, regardless of whether transactions use fiat, digital assets, offsets, informal swaps, in-kind services, or donations. Sanctions impact for traders: any U.S.-person activity involving blocked property of designated parties is generally prohibited, while foreign institutions that knowingly facilitate major transactions for them may face secondary sanctions. The immediate market effect is likely limited to compliance/flow risks rather than direct spot demand shock, but the headline reinforces tighter enforcement around crypto rails used in sanctioned jurisdictions—consistent with earlier wallet-freeze actions.