OFAC (U.S. sanctions office) has formally classified Iran’s digital asset sector as sanctionable under Executive Order 13902, which allows sanctions against entire economic sectors rather than individual entities. The designation follows years of enforcement against Tehran’s alleged use of Bitcoin and Tether, a stablecoin (cryptocurrency pegged to a reference asset), to evade sanctions. Chainalysis estimates Iran’s crypto ecosystem exceeded $7.8 billion last year, while wallets linked to the Islamic Revolutionary Guard Corps (IRGC) generated more than half of on-chain activity in the fourth quarter. Elliptic said Iran’s central bank acquired at least $507 million in USDT, with most of the funds moving through Nobitex before shifting to a cross-chain bridge after a mid-2025 hack. Since April, Operation Economic Fury has frozen or sanctioned about $1 billion in Iran-linked crypto, including Tether freezes totaling $344 million in April and $131 million in July. OFAC also sanctioned Nobitex, Wallex, Bitpin and Ramzinex in June, along with two Nobitex executives. The August 24 package, dubbed Operation Economic Outcast, also targeted a Ukrainian broker accused by OFAC of processing more than $100 million in oil payments tied to the IRGC’s Quds Force. Iran has additionally used crypto for shipping tolls in the Strait of Hormuz and bitcoin mining powered by subsidized electricity. The report frames the confrontation between Tehran’s stablecoin-based workarounds and Washington’s ability to freeze assets as ongoing.