The U.S. Department of the Treasury sanctioned nine individuals and entities accused of supporting weapons procurement for Iran's Islamic Revolutionary Guard Corps and the Ministry of Defense and Armed Forces Logistics. The Treasury's Office of Foreign Assets Control announced the action under the administration's Economic Fury campaign, targeting China- and Hong Kong-based individuals and companies accused of helping Iran obtain weapons and move funds through overseas procurement and financial networks. The sanctions follow earlier U.S. measures that froze about $1 billion in cryptocurrency tied to Iran as part of efforts to limit Tehran's access to overseas revenue, banking channels, and digital asset infrastructure.
Treasury Secretary Scott Bessent said the department is working to disrupt foreign procurement networks that support Iran's military.
OFAC Designates Iran Weapons Procurement Network Facilitators
OFAC said the sanctions focus on individuals and companies that helped facilitate weapons procurement for the IRGC and MODAFL. The designations were made under Executive Order 13382, which targets weapons of mass destruction proliferators and their supporters, and Executive Order 13902, which targets persons operating in Iran's financial sector.
Among those sanctioned are Chinese national Liu Boyu and other individuals connected to Mustad Limited, a Hong Kong-registered company previously designated by OFAC on May 8, 2026. Treasury said Mustad acted as an intermediary and attempted to facilitate financial transactions connected to IRGC weapons procurement.
OFAC also designated Wang Hongyi, Xu Lichun and Mustad Shanghai International Trade Co Ltd. Mustad Shanghai is wholly owned by Mustad, according to Treasury. Hong Kong-based Domus Trading HK Limited was also sanctioned for operating within Iran's clandestine banking network and attempting to facilitate payments tied to weapons procurement.
Treasury Sanctions China and Hong Kong Entities Supporting MODAFL
The sanctions targeted China-based Iranian national Manuchehr Golchin, who Treasury described as a facilitator for MODAFL defense acquisitions from China. Chinese national Meng Shaopei, managing director and 100% owner of Hong Kong-based Solos International Limited, was also designated. Treasury said Solos worked to support weapons procurement for MODAFL.
Shangshun Hong Kong Ltd was sanctioned because OFAC said it was owned, controlled by, or acting on behalf of Golchin. The Department of State simultaneously imposed sanctions on two entities and two individuals based in Iran and Belarus under Executive Order 13949, citing Iran's conventional arms-related activities.
The measures build on U.S. actions taken in May against procurement networks that sourced weapons for the IRGC and Iran's Center for Innovation and Technology Cooperation. Treasury said that network sought to purchase weapons from China, including man-portable air-defense systems.
Economic Fury Campaign Expands Crypto and Banking Enforcement
The sanctions come as the Treasury continues its Economic Fury campaign against Iranian financial channels. The department said the campaign has disrupted tens of billions of dollars in revenue that could otherwise have been available to Iran and its proxies.
Bessent previously said U.S. authorities seized about $1 billion in cryptocurrency tied to Iran. He said officials had "grabbed the wallets" as part of efforts to cut off digital asset channels used by Tehran.
Treasury said it has also targeted Iran's shadow banking networks, weapons supply chains, oil-related sanctions evasion, terrorist proxy financing, and shadow fleet vessels. The department warned that foreign companies and individuals supporting illicit Iranian commerce may face sanctions.
The department also warned about sanctions risks tied to Iranian demands for passage through the Strait of Hormuz. Treasury said payments for safe passage, maritime services or tolls may carry sanctions exposure, whether made through fiat currency, digital assets, offsets, informal swaps, in-kind services, or charitable donations.
As a result of the sanctions, all property and interests in property of the designated persons that are in the United States or controlled by U.S. persons are blocked and must be reported to OFAC. Entities owned 50% or more by blocked persons are also blocked. U.S. persons are generally prohibited from transactions involving blocked property unless authorized by OFAC. Foreign financial institutions that knowingly facilitate major transactions for designated persons may also face secondary sanctions.
FAQ
What did the U.S. Treasury sanction on Iran-linked actors?
The U.S. Department of the Treasury sanctioned nine individuals and entities accused of supporting weapons procurement for Iran's Islamic Revolutionary Guard Corps and the Ministry of Defense and Armed Forces Logistics. The Office of Foreign Assets Control announced the action under the Economic Fury campaign, targeting China- and Hong Kong-based individuals and companies accused of helping Iran obtain weapons and move funds through overseas procurement and financial networks.
How much cryptocurrency did U.S. authorities seize from Iran?
Treasury Secretary Scott Bessent said U.S. authorities seized about $1 billion in cryptocurrency tied to Iran. He said officials had "grabbed the wallets" as part of efforts to cut off digital asset channels used by Tehran. The seizure was part of broader U.S. measures to limit Tehran's access to overseas revenue, banking channels, and digital asset infrastructure.
What are the consequences for entities designated under these sanctions?
All property and interests in property of the designated persons that are in the United States or controlled by U.S. persons are blocked and must be reported to OFAC. Entities owned 50% or more by blocked persons are also blocked. U.S. persons are generally prohibited from transactions involving blocked property unless authorized by OFAC. Foreign financial institutions that knowingly facilitate major transactions for designated persons may also face secondary sanctions.
