US has sanctioned the Russia-linked A7 Network, accusing it of disguising payments for sanctioned clients, including Iranian entities, as legitimate trade.

The Treasury Department’s October 1 announcement said investigators identified more than $17 billion in transactions processed by the network’s overseas intermediaries between January 2025 and June 2026. That figure covers the intermediaries’ activity globally, rather than payments exclusively linked to Iran.

What Washington announced

Treasury outlined three measures:

  • A proposed payment restriction: FinCEN proposed prohibiting fund transfers involving A7’s intermediaries, known as sub-agents.
  • An alert for financial institutions: Guidance aims to help firms identify and report suspicious activity involving the network.
  • A sanctions designation: OFAC designated A7 Network a significant transnational criminal organization.

The FinCEN restriction remains a proposal. It is separate from the sanctions already imposed.

How the network allegedly operated

Treasury said third-country companies used false trade documents and misleading goods descriptions to conceal sanctioned transactions. It linked the network to Iran’s central bank, the Islamic Revolutionary Guard Corps, oil sales and weapons procurement.

The department also identified A7A5, a ruble-backed token issued by Old Vector LLC, as a tool for cross-border sanctions evasion. Old Vector was already sanctioned in August 2025.

Related: Why Trump’s War Hasn’t Broken Iran’s Economy.

A7 denies the allegations

A7 rejected the allegations the following day.

“A7 categorically rejects any allegations that it has worked with Iran or terrorist organisations,” the company said, according to Reuters.

It maintained that its business supports legitimate imports and exports, including consumer goods and commodities.

The case highlights how sanctions enforcement is targeting the companies connecting traditional bank payments with digital tokens, alongside the tokens themselves.

Disclosure: This article does not represent investment advice. The content is for informational and educational purposes only.