The United States government has imposed sanctions on eight cryptocurrency businesses across Toronto and Vancouver, alleging they served as critical financial lifelines for the Iranian regime. In a statement released Friday, the U.S. Treasury Department’s Office of Foreign Assets Control claimed these firms allowed sanctioned Iranian entities to bypass international restrictions, effectively funding terrorism and various proxy groups through digital asset transfers. Treasury Secretary Scott Bessent emphasized that Canada must not become a safe haven for those facilitating sanctions evasion for foreign regimes.
Among the targeted establishments is Million Money Exchange in Richmond Hill, which officials say moved hundreds of thousands of dollars to addresses linked to the Islamic Revolutionary Guard Corps. This specific firm was previously flagged in an investigative report by the Toronto Star and the ICIJ for operating without proper registration with Canada’s financial watchdog, Fintrac. Similarly, Darvish Exchange in Toronto’s Little Iran neighborhood was sanctioned following allegations that it funneled funds into accounts connected to Tehran. Both businesses have largely remained silent or denied direct ownership of the offending digital wallets.
The crackdown extends beyond geopolitical tensions, weaving into a high profile criminal case involving Ryan Wedding, a former Olympic snowboarder turned alleged drug kingpin. Federal authorities claim that several of these crypto shops helped Wedding launder billions of dollars in profits earned from a massive cocaine operation tied to the Sinaloa Cartel. According to investigators, Wedding utilized couriers to deliver bulk cash to these firms, which then converted the money into digital assets to be shipped overseas. Wedding currently remains in custody facing multiple felony counts including murder and drug trafficking.
This wave of sanctions marks a significant escalation in cooperation between American regulators and Canadian authorities like Fintrac, which has recently ramped up its own enforcement efforts by revoking over 160 business registrations since early 2026. Security experts suggest this is likely only the tip of the iceberg given how deeply embedded certain money service businesses have become within global criminal networks. As the crypto to cash industry continues to grow along corridors like Yonge Street, officials warn that clandestine swaps are becoming primary targets for national security operations aimed at cutting off illicit financial flows.
