U.S. Treasury Sanctions Russia-Linked A7 Network After $17 Billion in Transfers

TLDR

• The U.S. Treasury sanctioned the Russia-linked A7 Network on Oct. 1 as a transnational criminal organization.
• FinCEN says A7 Sub-Agents processed more than $17 billion between January 2025 and June 2026.
• FinCEN proposed a rule that would ban U.S. financial institutions from sending funds tied to A7 Sub-Agents, including crypto.
• More than 180 entities processed at least $179.1 billion in A7A5 stablecoin transactions, according to TRM Labs.
• The proposed rule faces a 30-day public comment period once it is published in the Federal Register.

The U.S. Treasury Department has sanctioned the A7 Network, a shadow banking group with ties to Russia. Officials say the network helped Russia, Iran and others move money around sanctions.

The action was announced on Oct. 1 as part of a Treasury effort called Operation Economic Outcast. It combines a sanctions designation with a proposed rule from the Financial Crimes Enforcement Network, or FinCEN.

The Office of Foreign Assets Control (OFAC) listed A7 as a transnational criminal organization. Any of its property under U.S. control is now blocked, and U.S. persons generally cannot do business with it.

Companies owned 50% or more by blocked persons may face the same limits. Violations can bring civil or criminal penalties.

How the A7 Network Moved Money

Treasury says A7 was created and backed by sanctioned individuals. The network is led by Ilan Shor, a sanctioned and convicted fraudster.

The network used companies in other countries, called Sub-Agents, to send and receive payments. These firms looked independent on paper, but A7 staff controlled their websites and bank accounts.

According to Treasury, staff used custom virtual private networks to hide their location. They also used fake trade documents and misleading product descriptions to make payments look like normal business.

FinCEN found that Sub-Agents processed more than $17 billion between January 2025 and June 2026. TRM Labs said A7 had accounts at about 435 financial institutions in at least 83 countries.

Treasury linked some transactions to Iran’s Central Bank and the Islamic Revolutionary Guard Corps. One Sub-Agent and a sister company received nearly $140 million from entities tied to Iranian sanctions evasion.

A separate Sub-Agent sent about $1.6 million to a company linked to Iranian weapons procurement. Treasury also tied the network to Nobitex, an Iranian crypto exchange sanctioned in June, and to North Korean crypto hacks.

“If you facilitate illicit finance for America’s adversaries, you will lose access to the U.S. financial system,” said Treasury Secretary Scott Bessent.

The A7A5 Stablecoin and the Proposed Ban

Crypto played a role through A7A5, a ruble-backed token issued by Old Vector LLC. Treasury sanctioned Old Vector in August 2025 and calls the token blocked property.

TRM Labs reported that more than 180 entities processed at least $179.1 billion in A7A5 transactions between February 2025 and June 2026. That figure may overlap with fiat transfers and is not directly comparable to the $17 billion total.

Some blockchain researchers have questioned how much of the reported A7A5 volume reflects real activity between independent users.

FinCEN’s proposed rule would bar covered U.S. financial institutions from sending or receiving funds involving identified Sub-Agents. It would cover both regular money and crypto addresses.

FinCEN also issued an alert listing red flags, such as shell companies with unexplained high volumes and suspicious trade papers. Banks filing reports are asked to use the term FIN-2026-A7NETWORK.

The U.S. move follows a United Kingdom warning on Aug. 31 about A7’s use of foreign firms to get around Russian sanctions.

The proposed rule will open for 30 days of public comment after it is published in the Federal Register. It is listed under docket FINCEN-2026-0265, and no final rule has been issued yet.

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