What are OFAC sanctions for crypto?

OFAC sanctions are US Treasury restrictions that block dealing with listed people, entities, and wallet addresses.

TL;DR

TL;DR: OFAC sanctions are restrictions enforced by the US Treasury that prohibit dealing with Specially Designated Nationals and, in crypto, with specific OFAC-listed wallet addresses.

OFAC and the SDN List

OFAC is the Office of Foreign Assets Control, part of the US Treasury. Its main tool is the Specially Designated Nationals (SDN) List, which names people and entities that US persons cannot deal with. The published data includes 19,218 SDN names, distributed as the US Treasury sdn.csv file.

How sanctions reach crypto

OFAC also designates specific crypto wallet addresses, blocking anyone from transacting with them. The live screening data tracks 947 OFAC-listed crypto wallets alongside 16 jurisdictions. Because crypto transactions settle to addresses rather than bank accounts, checking the wallet is as important as checking the name.

What is actually blocked

Dealing with a listed party is blocked outright, and the 50 Percent Rule extends that to any entity owned 50 percent or more by a blocked person. Liability is strict and penalties start at $356,000 per violation, so screening the counterparty before you send value is the core control.