US sanctions eight Canadian currency exchanges firms over alleged links to Iran

• Several targeted firms also allegedly laundered billions of dollars in illicit drug proceeds
• The designations were coordinated with Canada’s financial intelligence unit (FINTRAC), FinCEN, and the US Drug Enforcement Administration (DEA)

The United States Department of the Treasury announced sanctions against eight money services businesses operating across Canada, accusing the firms of functioning as financial conduits for Iran, the Islamic Revolutionary Guard Corps (IRGC), and international drug trafficking networks.

The enforcement action was executed under "Operation Economic Outcast," a federal initiative launched in Aug. designed to dismantle foreign financial mechanisms and cryptocurrency channels allegedly utilized by Tehran to bypass international sanctions.

"Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies," said Treasury Secretary Scott Bessent. "Treasury will pursue and disrupt the Iranian regime’s financial channels anywhere in the world."

OFAC claimed that the designated Canadian firms exchanged Iranian rials and conventional currencies for cryptocurrencies to enable cross-border transactions involving sanctioned Iranian entities.

Investigations alleged that multiple targeted firms transacted with state-aligned Iranian digital asset exchanges, including Nobitex, Wallex, Bitpin, and Shelbit, as well as digital wallets directly tied to the IRGC.

The Treasury said that the enforcement effort was conducted in coordination with the Financial Crimes Enforcement Network (FinCEN), the US Drug Enforcement Administration (DEA), and Canada’s national financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Federal authorities added that several of the businesses also laundered proceeds for Ryan Wedding, a high-profile Canadian narcotics trafficker arrested in Jan. 2026.

Prior to his apprehension, Wedding allegedly funneled cash generated from drug operations through money exchanges in Vancouver, Toronto, and Montreal to convert the funds into digital currencies destined for overseas accounts.

The eight designated entities, based primarily in Ontario and British Columbia, include:

• Diverse Trade Inc (dba Million Exchange): Transferred funds to IRGC-linked and terrorism-related addresses while converting illicit drug proceeds into digital assets.
• 1380079 BC Limited (dba Amin Exchange): British Columbia-based money services business processing transactions linked to Shelbit and narcotics proceeds.
• Top PC Technician Inc (dba Amin Exchange): Ontario-based affiliate of 1380079 BC Limited facilitating related crypto-fiat conversions.
  NIA Nations Currency Ltd – Facilitated transfers between Canada and Iran, routing transactions to sanctioned exchanges and IRGC-linked wallets.
• 2397639 Ontario Ltd (dba Farah Exchange): Processed transactions with Shelbit and Wallex while transferring assets linked to drug trafficking and designated networks.
• CCC Inc: Ontario-based firm offering digital asset conversions with transaction records tied to flagged addresses.
• B Galaxy Inc (dba Cryptoyal): Co-located partner to CCC Inc offering unlimited digital asset exchanges for Iranian currencies.
• Darvish Exchange: Ontario-based business facilitating Bitcoin exchanges for Iranian rials with documented links to Nobitex, Wallex, and Aban Tether.

Under the sanctions, all US-based property and financial assets connected to the designated entities are blocked, and American persons and institutions are prohibited from engaging in commercial or financial transactions with them. Foreign institutions that continue to transact with the designated firms risk exposure to secondary sanctions.