Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
The US has sanctioned eight Canadian currency exchange businesses it accuses of helping Iran get around sanctions by turning Iranian rials and other currencies into cryptocurrency.
Getting into it: The Treasury Department announced the sanctions Friday as part of “Operation Economic Outcast,” a campaign launched in August to cut off the money keeping Iran’s government and Revolutionary Guard Corps (IRGC) afloat. Treasury said the businesses, based in Ontario and British Columbia, handled money transfers in both directions for sanctioned Iranian entities, with several sending crypto to wallets tied to the IRGC, which Canada has designated a terrorist group.
Treasury also said several of the firms laundered drug money for Ryan Wedding, the former Olympic snowboarder accused of running a drug trafficking ring, by taking his bulk cash, converting it into crypto and sending it abroad, moving millions of dollars before he was arrested in January. It added that some of the firms switched names and moved locations to stay off the radar.
The businesses sanctioned:
- Million Exchange (Diverse Trade Inc), Ontario: sent hundreds of thousands of dollars in crypto to IRGC-linked or terrorism-related addresses and laundered drug money for Wedding
- Amin Exchange (1380079 BC Limited), British Columbia: received hundreds of thousands of dollars from a sanctioned Iranian crypto exchange and laundered drug money for Wedding in Vancouver
- Top PC Technician Inc, Ontario: an affiliate also operating as Amin Exchange
- NIA Nations Currency Ltd, British Columbia: transacted with IRGC-linked addresses and sanctioned Iranian exchanges
- Farah Exchange (2397639 Ontario Ltd), Ontario: sent millions in crypto to addresses tied to Wedding and thousands to terrorism-linked addresses
- CCC Inc, Ontario: received hundreds of thousands of dollars in crypto from terrorism-linked addresses
- Cryptoyal (B Galaxy Inc), Ontario: advertised unlimited crypto in exchange for Iranian currency
- Darvish Exchange, Ontario: transacted with several sanctioned Iranian exchanges
In a statement, Treasury Secretary Scott Bessent said, “Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies.” He added that his agency “will pursue and disrupt the Iranian regime’s financial channels anywhere in the world.”
The sanctions freeze any assets the firms have in the US and bar Americans from doing business with them. Canada’s financial intelligence agency, FINTRAC, said it worked with US officials on the action.
There’s been no comment from those sanctioned.
