OFAC Cryptocurrency Sanctions: What Businesses Must Know in 2025

When it comes to OFAC cryptocurrency sanctions, U.S. government rules that block digital asset transactions involving sanctioned individuals or entities. Also known as crypto AML compliance, these rules apply to any platform, exchange, or wallet service that touches U.S. systems or users—even if you’re based overseas. If your business handles crypto and has any link to the U.S., you’re not exempt. The OFAC SDN list, the official U.S. government list of blocked persons, organizations, and wallets includes over 1,200 crypto addresses as of 2025, from mixers used by ransomware gangs to exchanges linked to terrorist financing. Ignoring this list isn’t just risky—it’s illegal.

Compliance isn’t optional. The crypto compliance, the process of screening wallets, monitoring transactions, and reporting suspicious activity to avoid penalties systems used by Coinbase, Kraken, and Bitstamp aren’t just for show. They’re built to catch even the smallest connection to a sanctioned address. One transaction with a flagged wallet can trigger a $1 million fine, even if you didn’t know the address was blocked. That’s because OFAC doesn’t care about intent—it cares about outcome. If your platform processed a payment to a wallet on the SDN list, you’re liable. That’s why top exchanges now scan every deposit and withdrawal in real time, using blockchain analytics tools that track wallet histories back years.

It’s not just about blocking bad actors. The blockchain sanctions, the use of on-chain data to enforce financial restrictions on crypto users system works because every transaction is public. Even if someone tries to hide behind a mixer or a chain-hop, forensic tools can trace the money’s path. That’s why the U.S. Treasury now publishes wallet addresses directly on its website—not just names or companies. If you’re running a crypto business, you need to treat every address like a potential landmine. And it’s not just the big players who get hit. Small DeFi protocols, NFT marketplaces, and even peer-to-peer apps have been fined for failing to screen.

What does this mean for you? If you’re building or using a crypto service, you can’t just rely on luck or hope. You need a real compliance program: automated wallet screening, staff training, audit trails, and clear policies. The tools exist. The rules are clear. The penalties are brutal. And in 2025, regulators aren’t just watching—they’re actively hunting for gaps. Below, you’ll find real examples of how exchanges got caught, what they did wrong, and how to avoid the same fate.