US Expands Iran Sanctions to Crypto Over $100M Payment Trail as China Warns of Retaliation

• The US has expanded Iran sanctions to cover the crypto sector, alongside technology, gold, aviation and shipping, giving OFAC broader reach over Iran-linked digital asset activity
• Treasury says more than $100 million in crypto payments were processed since 2023 to facilitate Iranian oil sales for the IRGC-Quds Force, putting cryptocurrency at the center of the latest enforcement push
• China has warned it could take retaliatory measures if Washington expands secondary Iran sanctions against Chinese companies, while Iran has also threatened retaliation as tensions around the Strait of Hormuz remain high

The latest round of Iran sanctions has pushed cryptocurrency directly into Washington’s economic pressure campaign. The US Treasury is pointing to more than $100 million in crypto payments tied to Iranian oil sales. The move pushes the reach of US enforcement beyond named exchanges and wallets. But the response from Beijing may prove just as important. China has now warned that a wider crackdown on companies doing business with Tehran could trigger retaliation.

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US Brings Iran’s Crypto Sector Into the Sanctions Net

The Treasury Department launched “Operation Economic Outcast” on August 24, expanding the sectors that can expose foreign businesses to future sanctions. Digital assets were placed alongside technology, gold, aviation and shipping. OFAC also sanctioned nearly 60 individuals, entities and vessels linked to Iran’s nuclear, missile, cyber and oil networks.

The crypto move is broader than simply adding another exchange to the sanctions list. Under the new determination, OFAC can target foreign people or companies operating in, or providing services to, Iran’s digital asset sector, regardless of where they are based. Treasury says Iran has been using cryptocurrency to evade sanctions and support transactions tied to the IRGC.

The headline figure comes from Treasury’s case against UAE-based Ukrainian broker Ivan Obukhov. According to the department, Obukhov processed more than $100 million in cryptocurrency payments since 2023 to facilitate oil sales on behalf of the IRGC-Quds Force. His UAE-based company, Foscom FZE, was also sanctioned. Treasury says Obukhov had worked as a broker for Iran’s shadow fleet and helped facilitate oil shipments for the Iranian military and its proxies.

The allegation gives Washington a solid example of how digital assets can intersect with Iran’s oil trade, rather than treating crypto as a separate financial issue.

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China Warns US Against Wider Iran Sanctions

Beijing has now entered the dispute directly. China warned Tuesday that it would take “all necessary measures” to protect its interests if Washington significantly expands secondary sanctions affecting Chinese companies dealing with Iran.

This threat carries weight because China is Iran’s biggest oil customer. The Financial Times reported that Beijing buys about 90% of Iran’s oil. Meanwhile, the latest US measures have already targeted companies in mainland China and Hong Kong. But major Chinese financial institutions were spared.

Iran has also threatened retaliation over the expanded sanctions. This adds another layer of risk as tensions around the Strait of Hormuz remain elevated. For Iran sanctions, the crypto crackdown may be the newest front. But the larger test is if Washington can tighten the financial screws on Tehran without turning the campaign into a confrontation with Beijing.

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