When the U.S. government targets crypto with OFAC cryptocurrency sanctions, a set of financial restrictions enforced by the Office of Foreign Assets Control to block transactions with sanctioned individuals, entities, or countries. Also known as crypto asset freezes, these rules don’t just apply to banks—they extend to wallets, exchanges, and even DeFi protocols that handle U.S. dollars or serve U.S. users. If a crypto platform is on OFAC’s list, any transaction involving it—no matter how small—can trigger legal risk for you or the service you’re using.
These sanctions aren’t theoretical. In 2024, Iranian users sent over $4 billion in crypto abroad to protect their savings from a collapsing currency, but OFAC froze Tether (USDT) wallets linked to state-backed mining operations. Similarly, exchanges like GroveX and BloFin, which offer no-KYC trading, have drawn scrutiny because they make it harder to track who’s using them. Even if you’re not in Iran or North Korea, using a platform that serves sanctioned users can put you on OFAC’s radar. The same goes for crypto mining in countries like Kazakhstan and Iran, where government-controlled operations are flagged as tools for sanctions evasion. OFAC doesn’t just target bad actors—it targets systems that enable them.
What does this mean for you? If you’re trading on a non-KYC exchange, using stablecoins to move value across borders, or staking on a DeFi protocol with no compliance checks, you’re playing with fire. OFAC doesn’t need to prove intent—they just need to show a connection. That’s why INX Digital and other U.S.-regulated exchanges exist: they screen wallets, block flagged addresses, and report suspicious activity. Meanwhile, platforms like Bittworld or Libre Swap, with zero transparency, are exactly the kind OFAC targets next. You don’t need to be a criminal to get caught—you just need to use a tool that’s being used by one.
There’s no official list of all sanctioned crypto addresses, but OFAC updates its SDN list regularly, and blockchain analysts like Chainalysis track the flow of funds from sanctioned mining farms, ransomware groups, and darknet markets. The result? A growing number of exchanges are cutting off users from high-risk regions, freezing assets tied to certain tokens, and shutting down services entirely. If you’re in Iran, India, or any country facing financial isolation, your options are shrinking—and the ones left are risky.
Below, you’ll find real reviews and breakdowns of exchanges, mining laws, and token risks tied directly to these sanctions. Some platforms are outright banned. Others are barely hanging on. And a few? They’re the only way people have left to protect their money. You don’t need to be a lawyer to understand this—you just need to know what’s safe, what’s not, and where the lines are drawn.
OFAC cryptocurrency sanctions apply to all crypto businesses touching U.S. persons or systems. Learn what compliance requires today, from SDN list screening to DeFi risks and real enforcement cases.