OFAC Sanctions

OFAC sanctions are prohibitions administered by the U.S. Office of Foreign Assets Control that forbid transactions with designated persons, entities, jurisdictions, and specific crypto addresses.

OFAC maintains the SDN list and, since 2018, has added digital-currency addresses to designations, meaning a single wallet can be off-limits worldwide given the reach of the U.S. financial system. Liability is effectively strict: intent is not required, so a firm that processes a sanctioned counterparty risks penalties regardless of knowledge. Screening must therefore catch both listed addresses and downstream exposure to them. Our sanctions-screening primitive matches counterparties against OFAC and other lists, while the exposure breakdown and multi-hop fund-flow tracing reveal indirect contact with sanctioned clusters even when the immediate address is clean.