US treasury fined crypto wallet firm Exodus Movement $3.1 million for violating Iran-related sanctions, saying it provided customer support to users in Iran and, in some cases, advised them to use VPNs to bypass restrictions on access to digital asset exchanges.
The Office of Foreign Assets Control said on Tuesday that the Omaha, Nebraska-based financial technology company agreed to the settlement to resolve potential civil liability for 254 apparent violations between October 2017 and January 2019, describing 12 of those cases as “egregious” and saying the conduct was not voluntarily self-disclosed.
Exodus offers a non-custodial digital asset wallet that allows users to store private keys and access third-party exchanges through its software, while generating revenue by collecting fees when customers transact through those exchange partners, OFAC said.
The regulator said Exodus’s customer service team responded to inquiries from users in Iran and enabled them to continue using the wallet or exchange services, even though the firm’s own terms of use prohibited use in US-embargoed jurisdictions.
OFAC said Exodus became aware in 2018 that at least one exchange partner was blocking Iran-based users to comply with US regulations, but staff nevertheless recommended VPNs that enabled some users to bypass location-based controls.
As part of the settlement, OFAC said Exodus agreed to invest $630,000 in additional sanctions compliance controls and cited broader remedial steps, including enhanced screening and staff training.
Iran has increasingly leaned on cryptocurrency rails to move money abroad as sanctions and banking restrictions complicate traditional transfers.
US Treasury actions in 2025 described “shadow” networks using overseas fronts and crypto transactions tied to Iranian oil revenue, portraying digital assets as one way to bypass chokepoints in the regulated financial system.
Iran’s domestic crypto ecosystem has also drawn attention from analysts and Western officials for potential sanctions-evasion uses, including allegations that some platforms help users access offshore liquidity or route funds beyond oversight.
A 2025 Reuters report on a major hack of Iran’s Nobitex said blockchain-analysis firms and US lawmakers have flagged the exchange as linked to sanction-bypassing activity, with researchers also pointing to past IRGC-linked use of crypto venues for cash-outs.
Binance has been cited in past reporting as being used by customers in Iran despite US sanctions, while large global exchanges face compliance and jurisdiction challenges when users route activity through workarounds or intermediaries.
