The U.S. Treasury has designated the Russia-linked A7 Network as a significant transnational criminal organization and proposed restrictions on payment intermediaries tied to what authorities describe as a sanctions-evasion shadow banking system benefiting Iran. The measures, announced under Operation Economic Outcast, were disclosed on October 1 and combine an Office of Foreign Assets Control sanctions designation with a separate Financial Crimes Enforcement Network proposal aimed at cutting off transfers involving the network’s foreign Sub-Agents.
According to FinCEN, more than 180 entities processed at least $179.1 billion in A7A5 transactions between February 2025 and June 2026. The network’s ruble-backed token, A7A5, was issued by the already-sanctioned Old Vector LLC and is backed by ruble deposits at Promsvyazbank, a sanctioned Russian bank. FinCEN also traced more than $17 billion in A7 sub-agent payments from January 2025 through June 2026, while the Treasury linked A7 to the Iranian exchange Nobitex.
The A7A5 stablecoin operates on both Tron and Ethereum and has been used as a bridge into assets such as USDT, according to FinCEN. The broader case, the Treasury said, illustrates how stablecoins can support cross-border settlement outside traditional banking channels and complicate sanctions enforcement.
OFAC’s designation blocks A7 property and interests in property within U.S. jurisdiction. FinCEN’s proposed rule would prohibit covered U.S. financial institutions from certain transfers involving A7 Network Sub-Agents, with a public comment period closing 30 days after publication in the Federal Register. Finalization of the measure is the next regulatory step to watch.
