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Treasury sanctions eight Canadian money exchanges over Iran-linked crypto transfers

Treasury sanctions eight Canadian money exchanges over Iran-linked crypto transfers

Force in Play

The designations target firms Treasury says converted Iranian rials into digital assets and handled drug proceeds.

Yesterday: Eight Canadian firms blocked

Overview

Updated 1 hour ago

The U.S. Treasury designated eight money services businesses in Canada on November 6, blocking them from the dollar financial system. Treasury says the firms exchanged Iranian rials for cryptocurrency and moved money for sanctioned Iranian entities, including the Islamic Revolutionary Guard Corps.

The designations are the third wave of Operation Economic Outcast, a campaign Treasury launched in August to cut Iran off from digital assets. They also tie the Canadian firms to Ryan Wedding, a former Olympic snowboarder accused of running a drug ring, who Treasury says used the same exchanges to launder proceeds.

Why it matters

If these designations hold, eight channels for moving Iranian money into cryptocurrency close. If they don't, the same playbook spreads to other firms.

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Key Indicators

8
Canadian firms designated
All eight are money services businesses based in Canada.
$120.7M
Received by Million Exchange address
Between January 2025 and February 2026, according to TRM Labs.
$2.5M
Observed transfers among designated firms
June 2025 to August 2026, including flows with previously sanctioned entities.
4
Iranian exchanges designated in June 2026
Nobitex, Wallex, Bitpin and Ramzinex.

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People Involved

Scott Bessent
Scott Bessent
U.S. Treasury Secretary
In office
 Ryan Wedding
Ryan Wedding
Accused drug trafficker and former Olympic snowboarder
In U.S. custody since January 2026

Organizations Involved

U.S. Treasury — Office of Foreign Assets Control (OFAC)
U.S. Treasury — Office of Foreign Assets Control (OFAC)
US Treasury sanctions office
Issued the designations

The Treasury office that administers U.S. economic sanctions.
FT
Financial Transactions and Reports Analysis Centre of Canada
Financial intelligence unit
Coordinated with Treasury on the action

Canada's anti-money-laundering and financial intelligence agency.
ME
Million Exchange
Money services business
Designated by OFAC

An Ontario-based currency exchange also known as Diverse Trade Inc.
AE
Amin Exchange
Money services business
Designated by OFAC

A currency and digital asset exchange operating as 1380079 BC Limited and Top PC Technician Inc.

Timeline

January 2026 November 2026

6 events Latest: Yesterday
Tap a bar to jump to that date

  1. Eight Canadian firms blocked

    Latest Sanctions

    OFAC designates the money services businesses under Executive Order 13902.

  2. Action coordinated with Canada and DEA

    Statement

    Treasury says FinCEN, FINTRAC and the Drug Enforcement Administration took part.

  3. Aban Tether and Shelbit designated

    Sanctions

    Treasury targets two exchanges it says moved millions for the IRGC.

  4. Operation Economic Outcast launched

    Sanctions

    Treasury starts a campaign to sever Iran's digital asset channels.

  5. Four Iranian exchanges sanctioned

    Sanctions

    Treasury designates Nobitex, Wallex, Bitpin and Ramzinex.

  6. Ryan Wedding apprehended

    Law enforcement

    The accused drug trafficker is taken into custody, later transferred to the United States.

Scenarios

1

OFAC designates more Canadian money services businesses

Likely Resolves by Q2 2027

Discussed by: Treasury's press release, which calls the action a continuation of a comprehensive campaign

Treasury has now designated Iranian exchanges and the foreign firms that connect to them in three waves since June. If the pattern holds, OFAC will add more Canada-based money services businesses under Executive Order 13902 as it maps on-chain flows to new intermediaries.

2

A designated firm reopens under a new name

Possible Resolves by Q2 2027

Discussed by: Treasury, which says several designated entities have already changed names and addresses to evade detection

Treasury says the firms remained operational despite media reporting on their risks, and that some have rebranded. A firm could register under a new corporate name and keep serving the same customers, testing whether designation actually closes the channel.

3

Canada tightens rules for money services businesses

Possible Resolves by End of 2027

Discussed by: Treasury's release, which notes Canada hosts hundreds of such firms and that media have flagged the risks

The designations put pressure on Canada's own oversight. If Canadian officials conclude that registration alone is not catching sanctions evasion, they could propose stricter due-diligence or reporting requirements for money services businesses.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

December 2012

HSBC deferred prosecution agreement (2012)

U.S. authorities reached a deferred prosecution agreement with HSBC over weak money-laundering controls. The bank paid about $1.9 billion and admitted that its systems let Mexican drug cartels move cash and allowed transactions with sanctioned Iranian entities.

Then

HSBC avoided criminal prosecution and accepted an independent monitor.

Now

The case became the benchmark for treating banks as sanctions chokepoints, and for criticism that large institutions escape harsher penalties.

Why this matters now

It shows how authorities use financial institutions as the enforcement point, the same logic behind targeting small Canadian exchanges.

March 2012 and November 2018

SWIFT disconnects Iranian banks (2012 and 2018)

SWIFT, the main cross-border bank messaging network, cut Iranian banks off in March 2012 after European sanctions. It disconnected them again in November 2018 after the United States withdrew from the nuclear deal.

Then

Iran lost access to the standard channel for international bank payments.

Now

Iran and its intermediaries turned to alternative methods, including currency exchanges and digital assets.

Why this matters now

The Canadian firms are part of that alternative plumbing, which is why Treasury is now targeting them directly.

2013 to 2017

Operation Choke Point (2013)

A U.S. Justice Department initiative pressed banks to cut off payday lenders, gun sellers and money transmitters that regulators considered high-risk. Critics said it punished legal businesses without due process.

Then

Some banks dropped entire categories of customers.

Now

The program was wound down in 2017 after congressional criticism, but informal pressure on banks continued.

Why this matters now

It shows the difference between formal sanctions and informal pressure, and the backlash that can follow when enforcement hits legal businesses.

Sources

(8)
+2
U.S. Department of the Treasury Al Jazeera CBC News Office of Foreign Assets Control TRM Labs Reuters via Investing.com The Straits Times Iran International