The Treasury Department imposed sanctions on Nobitex, Iran's largest cryptocurrency exchange, along with its founders and executives on Tuesday. The action accuses the platform of providing significant support to the Iranian government's efforts to evade financial restrictions and fund militant activities through digital assets.

Treasury Secretary Scott Bessent stated that Iran's economy is in free fall while the regime co-opts digital asset technologies for corrupt purposes. These sanctions are part of a broader financial campaign that has frozen nearly $500 million in regime-linked cryptocurrency and blocked Iranian ports and ships globally to restrict oil revenue.

According to Chainalysis, nearly $7.8 billion in cryptocurrency circulated in Iran last year, with increasing activity tied to Islamic Revolutionary Guards Corps transactions. The exchange became central to an alternative financial system following a Reuters investigation, despite its founders' close ties to Iran's supreme leaders.

The latest economic measures come as peace negotiations between the US and Iran appear stalled. Sanctions target not only the exchange but also brothers Ali and Mohammad Kharrazi, co-founder Amir Hossein Rad, and several other Iranian crypto platforms, representing an expanding enforcement effort against Iran's financial networks.