The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions targeting a financial network that supports the Houthis, a group backed by Iran that has been responsible for numerous attacks on vessels in the Red Sea and Gulf of Aden.
The sanctions specifically focus on individuals and entities involved in supplying resources to the Houthis.
Among those sanctioned is Sa’id al-Jamal, identified as a key financial facilitator linked to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Al-Jamal’s network has allegedly been involved in acquiring a wide range of goods from Russia, including weapons and stolen Ukrainian grain, which were subsequently sent to Yemen for use by the Houthis.
One of the critical elements of the new sanctions is the inclusion of eight cryptocurrency wallets, which the OFAC claims were used by the Houthis to move funds related to their operations. Under the new regulations, any transactions involving these crypto addresses are prohibited unless specifically authorized by OFAC. This means that U.S. individuals or entities are barred from dealing with these assets, as engaging with blocked persons or properties without permission is illegal.
According to blockchain intelligence firm TRM Labs, two of the sanctioned crypto wallets were already associated with Sa’id al-Jamal, while others were linked to groups identified by Israel’s National Bureau for Counter Terror Financing (NBCTF) as being involved in funding terrorism. Further on-chain analysis revealed that funds from these wallets had been transferred to other high-risk accounts and entities also sanctioned by OFAC. Some of the funds were traced to manufacturers and distributors of unmanned aerial vehicles (UAVs) and related technology connected to both China and Russia.
The Treasury’s actions reflect ongoing efforts to disrupt financial networks that support militant groups and to curb the use of digital currencies for illicit financing.
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