OFAC Crypto Sanctions: What You Need to Know About Restricted Tokens and Wallets

When the U.S. government blocks a cryptocurrency, it’s not just a technical issue—it’s a legal one. OFAC crypto sanctions, a set of restrictions enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control. These sanctions target wallets, exchanges, and tokens tied to sanctioned entities like terrorist groups, rogue states, or cybercriminal networks. Also known as crypto blacklist, they’re not suggestions—they’re enforceable rules that can lead to fines, account freezes, or even criminal charges if ignored. If you’re trading crypto in the U.S., you’re expected to check if a coin or wallet is on the OFAC list before sending or receiving funds.

OFAC doesn’t ban entire blockchains. It targets specific addresses and tokens. For example, in 2022, OFAC added the Tornado Cash mixer to its list after it was used to launder over $7 billion in stolen crypto. That didn’t make Ethereum illegal, but it made interacting with that specific smart contract a violation. Similarly, some low-liquidity tokens like IRYNA (JUSTICEFORIRYNA), a Solana-based meme coin with unverified charity claims, or Orbit Chain (ORC), a nearly dead token with no developer activity, might not be on the list—but they’re still risky because they lack transparency. If a project hides its team, has no audits, or shows zero real usage, regulators may flag it later. Exchanges like Nexus Trade and UZX, which lack clear compliance practices, become dangerous because they don’t screen transactions properly.

Compliance isn’t optional. KYC compliance, the process of verifying user identities to prevent money laundering is the first line of defense. Most U.S.-based exchanges now automatically block OFAC-listed addresses, but if you use a non-KYC wallet or a peer-to-peer trade, the responsibility falls on you. Tools like blockchain explorers can help you check if an address is flagged, but they’re not foolproof. The real risk isn’t just losing money—it’s getting caught in a legal net you didn’t know existed. That’s why understanding blockchain regulation, the growing framework of laws governing digital asset use matters more than ever.

What you’ll find below isn’t just a list of articles—it’s a practical toolkit. You’ll see real examples of how sanctions impact tokens, how exchanges handle them, and how to avoid accidental violations. No theory. No fluff. Just what you need to trade safely, stay legal, and protect your assets.