The United States sanctioned crypto exchanges Shelbit and Aban Tether on August 7, 2026, alleging the platforms helped Iran evade financial restrictions and funnel millions of dollars to the Islamic Revolutionary Guard Corps. Treasury Secretary Scott Bessent stated that Washington will continue targeting illicit funding networks that support the Iranian government as both nations remain locked in a five-month conflict over maritime transit.
U.S. Treasury Targets Shelbit, Aban Tether, and Related IRGC Funding Networks
The U.S. Department of the Treasury sanctioned crypto exchanges Shelbit and Aban Tether alongside Shelbit founder Siavash Kayvanpour and several related companies. According to the Treasury Department, Shelbit provided financial support to the IRGC and the crypto exchange Nobitex. Federal officials alleged that Shelbit processed millions of dollars in cryptocurrency for the IRGC and other Iran-linked groups, with tens of millions originating from a Persian-language gambling network.
Shelbit rejected these allegations in an August 1 statement, denying any knowing facilitation of sanctions evasion, money laundering, or terrorist financing. The platform maintained that its customer operations ended in January 2026. Meanwhile, the Treasury sanctioned Aban Tether separately for processing millions of dollars in transactions involving previously sanctioned Iranian exchanges, including Nobitex, Wallex, Bitpin, and Ramzinex.
Escalating Economic Pressure and Historical Sanctions Context
The August 7 enforcement action extends Washington’s long-running use of economic restrictions against Iran, which began in 1979 following the seizure of the U.S. Embassy in Tehran. That sanctions campaign accelerated significantly after President Donald Trump returned to office. Treasury data cited by Reuters indicates that the Office of Foreign Assets Control has sanctioned more than 1,000 individuals, vessels, and aircraft since early 2025.
“Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat,” Treasury Secretary Scott Bessent said in an August 7 statement.
Strait of Hormuz Negotiations and Energy Shipping Disruptions
The latest round of crypto sanctions coincides with ongoing negotiations between Iran and Oman regarding commercial vessel transit through the Strait of Hormuz. The strait serves as one of the world’s most critical energy shipping routes. Iran announced on August 5 that it had agreed on geographical coordinates for a proposed transit route with Oman. However, significant disagreements remain regarding Tehran’s authority over passing vessels and potential fees.
President Donald Trump stated on August 6 that the strait was “sort of open right now.” Despite these diplomatic talks, vessel traffic through the corridor remains heavily restricted. Shipping data shows fewer than 10 ships per day crossed the strait between August 2 and August 4.
Did You Know?
Since early 2025, the U.S. Treasury’s Office of Foreign Assets Control has sanctioned more than 1,000 people, vessels, and aircraft as part of a financial pressure campaign against Tehran, according to Treasury data cited by Reuters.
Frequently Asked Questions
Why did the U.S. Treasury sanction Shelbit and Aban Tether?
The Treasury Department alleged that Shelbit and Aban Tether processed millions of dollars in cryptocurrency to help Iran evade financial restrictions, supporting the Islamic Revolutionary Guard Corps and other sanctioned entities.
What was Shelbit’s response to the Treasury allegations?
In an August 1 statement, Shelbit denied knowingly facilitating sanctions evasion, money laundering, or terrorist financing, asserting that its customer operations ended in January 2026.
How are crypto sanctions affecting U.S.-Iran relations?
The crypto sanctions run parallel to broader geopolitical tensions, including ongoing negotiations between Iran and Oman over commercial vessel transit and security fees in the Strait of Hormuz.
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