U.S. Sanctions on Iranian Officials and Digital Asset Exchanges
The U.S. Department of the Treasury has taken more steps against Iranian officials linked to human rights abuses. One significant figure is Eskandar Momeni Kalagari, Iran’s Minister of the Interior. He oversees security forces responsible for the violent suppression of protests, leading to numerous deaths.
Another notable individual, Babak Morteza Zanjani, has a controversial history. Convicted of embezzling billions from Iran’s oil revenue, he was recently freed and is now linked to financing projects that support the Islamic Revolutionary Guard Corps (IRGC). The Treasury has also targeted two digital asset exchanges tied to Zanjani. This marks the first time a digital asset exchange has been sanctioned for aiding the Iranian economy, especially in circumventing sanctions.
Secretary of the Treasury Scott Bessent criticized the Iranian regime, stating they waste vital oil revenues on military advancements instead of helping the people. He emphasized that the U.S. would persist in its campaign against corrupt networks in Iran.
The actions come under multiple executive orders aimed at addressing human rights abuses and terrorism linked to Iran’s financial operations. In recent years, over 875 individuals and entities have faced sanctions as part of this ongoing effort.
Violence Against Protesters
Iranian authorities, under the control of senior officials like Momeni and Majid Khademi—leader of the IRGC Intelligence Organization—are accused of brutally quelling protests. Organizations have reported photographs showing unrest and casualties, which have overwhelmed local medical facilities.
The impact of these actions has been severe in provinces like Tehran and Gilan, where security forces have used live ammunition against unarmed demonstrators. Disturbing reports highlight that victims are often denied proper burials, with families having to negotiate for the recovery of bodies.
Digital Assets in the Sanctions Evasion Landscape
Babak Morteza Zanjani’s role in Iran’s financial landscape extends to digital assets. His connections with the Zedcex and Zedxion exchanges have raised alarms. These UK-registered exchanges reportedly processed over $94 billion in transactions, with many linked to IRGC-associated accounts. This highlights how digital platforms can be exploited to bypass sanctions.
In 2020, a study found that about 15% of surveyed Iranians were aware of cryptocurrencies, and interest has increased since then. Many see digital currencies as a way to protect their assets amid economic turmoil. However, this presents challenges for global regulatory bodies trying to enforce sanctions effectively.
Support for Internet Freedom in Iran
In light of the internet restrictions imposed by Iran during protests, the U.S. continues to advocate for the Iranian people’s access to the internet. There’s an existing general license (GL D-2) aimed at ensuring this access, reflecting the U.S. commitment to supporting democratic values and freedom of speech.
Sanction Implications
The recent sanctions mean all property related to the targeted officials within U.S. borders is frozen. U.S. persons and entities are prohibited from dealing with these individuals or any organization they control. Violating these sanctions can lead to severe penalties.
The aim of these sanctions is not merely punitive; they are designed to encourage change within Iran. The Treasury emphasizes that the process for seeking removal from the sanctions list is open, offering a path for designated individuals to alter their behavior.
For more information, you can visit the Office of Foreign Assets Control.
