OFAC Cracks Down on Eight Canadian MSBs for Iran Crypto Operations
The U.S. Office of Foreign Assets Control (OFAC) designated eight Canada-based money services businesses (MSBs) on November 6, 2026, alleging they operated in the digital asset sector of the Iranian economy, facilitating transactions with sanctioned Iranian exchanges and the Islamic Revolutionary Guard Corps (IRGC). The designees, which include entities operating under names like Million Exchange, Amin Exchange, and Farah Exchange, exchanged Iranian rials and other currencies for digital assets, creating a financial pipeline for illicit actors.
Wedding Used Canadian MSBs to Launder Drug Proceeds
The network’s reach extended beyond state-sponsored actors. The Treasury Department, in collaboration with FINTRAC, highlighted that several of the Canadian MSBs worked with Ryan Wedding, a Canadian drug trafficker designated by OFAC in November 2025 and apprehended in January 2026.
Million Exchange Address Volume Peaked Before Wedding's Arrest
For instance, the Million Exchange address, allegedly used by Wedding, received USD 120.7 million and sent USD 121.8 million between January 2025 and February 2026. Its monthly volume peaked at USD 19.4 million in January 2026—more than double the 2025 average—before falling to USD 1.4 million in February, coinciding with Wedding’s arrest.
On-Chain Activity and Sanctioned Counterparties
Blockchain intelligence reveals a web of transactions between the newly designated Canadian firms and previously sanctioned entities. On-chain activity shows Amin Exchange, Million Exchange, and NIA Nations making transfers with entities OFAC had already designated. For example, Amin Exchange then sent funds to Million Exchange between October and December 2025.
Further analysis shows links to the IRGC.
Operation Economic Outcast Expands its Net
This action is a critical escalation in “Operation Economic Outcast,” the Treasury’s campaign to sever the economic lifelines of the Iranian regime and its IRGC. The operation specifically targets Tehran’s exploitation of cryptocurrency as a tool for sanctions evasion.
This coordinated effort involved not only OFAC but also the Treasury’s Financial Crimes Enforcement Network (FinCEN), Canada’s FINTRAC, and the Drug Enforcement Administration (DEA), reflecting a whole-of-government strategy to combat the illicit use of digital assets for both terrorism and drug trafficking.
🚨 US Treasury just sanctioned 8 Canadian money firms in Ontario & BC for swapping Iranian rials into crypto for the IRGC and laundering drug cash for Ryan Wedding, the former Canadian Olympian turned cocaine kingpin. They gave the Iranian regime financial lifelines while… https://t.co/hndGWan7Mv pic.twitter.com/JNIpWPA9bP
Compliance Teams Must Screen Against Listed TRON Addresses
For compliance teams, the designation presents a challenge. The OFAC entries list various businesses, including Amin Exchange, Farah Exchange, CCC Inc., Million Exchange, NIA Nations, and others. Teams must screen counterparties and deposit addresses against the six TRON addresses listed by OFAC and monitor for transactions with the entities identified.
What Specific Canadian Companies Were Designated?
- What specific Canadian companies were designated? Diverse Trade Inc (Million Exchange), 1380079 BC Limited, Top PC Technician Inc., NIA Nations Currency Ltd (NIA Nations), Farah Exchange, CCC Inc., B Galaxy Inc., and Darvish Exchange.
- How does this affect non-U.S. companies? OFAC stated non-U.S. persons are prohibited from causing U.S. persons to violate U.S. sanctions, and financial institutions risk exposure for certain transactions involving blocked persons.
- What resources can companies use to understand the sanctions risk? Companies should refer to OFAC’s FAQ 1250 and FAQ 1257 on sanctions risk tied to Iranian digital asset exchanges, which detail the secondary sanctions risk under E.O. 13902.
“Treasury will pursue and disrupt the Iranian regime’s financial channels anywhere in the world.”
— Secretary of the Treasury Scott Bessent
