According to the Office of Foreign Assets Control (OFAC), a network of Houthi financial facilitators and procurement operatives was recently identified as securing commodities from Russia. Reports suggest those ‘commodities’ included weapons and were worth an estimated “tens of millions of dollars” overall. Some of the commodities being acquired included unmanned aerial vehicles (UAVs) and anti-UAV equipment. The network was also reportedly transporting stolen grain that had originated in Ukraine.

Commercial shipping vessels that travel through the Red Sea have reported on increased aggression coming from the Houthis, which isn’t too surprising considering the ongoing tension between the U.S., Iran, and the Houthis. The Houthis claim they will continue to attack commercial vessels in the Red Sea in retaliation for Israel’s action in Gaza.

The Foreign Terror Organization (FTO) has direct access to this area because it controls Yemen’s Northwestern coastline and the Bab al-Mandeb Strait. The ongoing attacks have disrupted global shipping routes and affected world trade. The impact has increased maritime insurance costs, caused shipping delays, and led to escalating regional tension.

As a result of these allegations, the OFAC issued sanctions against eight cryptocurrency addresses associated with the group on April 2nd, 2025. These addresses are accused of directly working in coordination with Sa’id al-Jamal, a Houthi financial official who is also backed by Iran’s Islamic Revolutionary Guard Corps-Qods Force. The total inflow to these eight cryptocurrency addresses is estimated to be around $900M.

Sanctioning cryptocurrency addresses and digital wallets might become more commonplace, as the Houthis and other enemies of the U.S. continue to use digital assets, OTCs, and VASPs to finance operations and move money. Cryptocurrency use is likely to grow and become more sophisticated as sanctions continue to put pressure on Iran and the Houthis.

Compliance is Key

Complying with OFAC sanctions is more than just a matter of moral significance. It’s a legal requirement for every American who conducts business.

If you’re caught violating OFAC regulations, then you’ll face very serious consequences, even if the violation was unintentional. Depending on the severity of the violation, you could potentially face up to 20 years in prison. You’ll also very likely get hit with monetary fines, which could exceed $1M if your OFAC violation was extreme. Your business will likely have its assets frozen temporarily, with the potential of having them seized and forfeited. Considering the nature of this crime, the business will also likely have any professional licenses revoked.

Most businesses are not able to recover from an OFAC sanction violation accusation. On top of all these civil and criminal consequences, the reputational damage done to the brand is likely to translate into a monetary loss for the company and a significant loss in consumer trust.

The best way to avoid all these consequences is to ensure compliance. Here at Bukh Global, our team of international attorneys fully understands OFAC sanctions. We can help you remain compliant or assist you in navigating any OFAC sanction violation accusations. Schedule a free consultation call with our team now to discuss your situation with our team.