Bessent urges nations to cut ties with Iran’s digital assets

On Monday Treasury Secretary Scott Bessent launched Operation Economic Outcast, warned foreign governments to sever links with Iran’s digital assets or face sanctions and announced penalties against a cyber unit tied to Iran’s Ministry of Intelligence and Security for alleged cryptocurrency thefts.

Bessent described Operation Economic Outcast as “an unprecedented, whole-of-government, economic campaign” aimed at cutting off the Iranian regime’s ability to use digital assets and other sectors to evade sanctions. The Treasury identified digital assets as a priority target alongside technology, gold, aviation and shipping. The Office of Foreign Assets Control can target any person or entity, regardless of location, under Executive Order 13902.

In the first round of actions the department named a cyber unit linked to the Ministry of Intelligence and Security and listed individuals it says carried out crypto heists against U.S. institutions and companies. The names include Mojtaba Ghal’eh-Kuhi, Behzad Mesri, Keyvan Fayyaz Ghareh Blagh, Saber Shahbazi Balujeh, Mohammad Reza Kadkhoda’i and Arman Kahzadian. The Treasury linked the actors to thefts of digital assets and other illicit finance activity used to support the Iranian government.

The Treasury warned that countries and private actors that enable Iran’s use of digital assets could face secondary sanctions. The department cautioned: “Any entity that facilitates money laundering or sanctions evasion on behalf of Iran risks being cut off from the U.S. financial system.” The department said it will provide governments with specific timelines to halt identified Iran-related activities.

Officials named several states whose economic ties to Iran could be affected, including China, Iraq and Turkey for energy purchases and other countries such as India and Russia. The initial announcement did not include country-specific deadlines. The department added: “Every country will be given a defined timeline to shut down the Iran-related activity we have identified. If they fail to act, Treasury will act.”

The actions follow earlier enforcement efforts by the Treasury. Officials previously reported nearly $1 billion in Iranian crypto funds seized and, in April, recovery of $344 million in USDT from two Tron addresses with assistance from a cryptocurrency firm. The department described those seizures as part of broader enforcement work to disrupt channels Iran uses to move revenue and evade sanctions.

Operation Economic Outcast is intended to use a range of tools, including sanctions on foreign financial institutions, shipping companies, technology providers and cryptocurrency service providers that facilitate Iran’s financial flows. The Treasury did not publish a full list of entities to be sanctioned beyond the named MOIS-affiliated actors, nor did it set an explicit timetable for additional rounds of penalties. Enforcement officials said the department will continue to use financial sanctions, information sharing and cooperation with private-sector platforms to track and block illicit transactions connected to Iran.