U.S. Treasury Designates A7 Network a Transnational Criminal Organization

The U.S. Treasury designated the A7 Network a significant transnational criminal organization, blocking its property under U.S. jurisdiction as part of an action targeting alleged sanctions evasion and illicit finance tied to Russia and Iran.

The designation was announced Oct. 1 by the Treasury’s Office of Foreign Assets Control. The agency linked the network to Nobitex, Iran’s largest digital asset exchange, and said it had facilitated transactions related to North Korean hacks of cryptocurrency exchanges.

The Treasury identified A7A5 as a blocked, ruble-backed token issued by Old Vector LLC, a company within the A7 Network. It said the token was created to help network members evade sanctions and conduct international transactions.

The action blocks A7 Network property and interests in property located in the United States or held or controlled by U.S. persons. It also generally prohibits U.S. persons from conducting transactions involving blocked property, unless authorized or exempt.

The designation forms part of a broader Treasury action that also includes a proposed rule targeting fund transfers involving A7 Network sub-agents and an alert to financial institutions about suspicious activity.