OFAC SDN List: What It Is and How It Affects Crypto in North America

When you hear OFAC SDN list, a U.S. government database of individuals and organizations blocked from financial transactions. Also known as Specially Designated Nationals list, it's the single most powerful tool the U.S. uses to enforce economic sanctions—and it directly impacts anyone using cryptocurrency in North America. If you're trading, staking, or sending crypto, you’re not just dealing with wallets and blockchains. You’re also navigating a legal minefield shaped by this list.

The OFAC SDN list includes names of terrorists, drug traffickers, rogue governments, and companies tied to them. But it’s not just people—it’s also crypto addresses, exchange accounts, and even entire platforms. In 2023, OFAC added the first-ever crypto wallet addresses to the list. That means if you send funds to a wallet on that list—even accidentally—you could be violating U.S. law. Exchanges like Coinbase and Kraken freeze accounts linked to these addresses. DeFi protocols like Uniswap and Aave now screen transactions against the list before processing swaps. This isn’t theoretical. In 2024, a Canadian trader lost $80,000 after sending ETH to a wallet that had been flagged months earlier. He didn’t know it was on the list. He didn’t even know OFAC tracked crypto.

The crypto sanctions system is growing faster than most traders realize. OFAC doesn’t just target bad actors—it also blocks entities that help them. That includes mixers, privacy tools, and even some blockchain analytics firms. If a tool is used to obscure transactions involving sanctioned parties, it can get added. The OFAC compliance burden now falls on everyone: individual traders, small DeFi projects, and even wallet developers. You don’t need to be a bank to be held accountable. The U.S. government has made it clear: ignorance isn’t a defense.

What does this mean for you? If you’re in North America, you’re already under this system’s reach—even if you’ve never heard of OFAC. Your exchange already checks addresses for you. But if you use a non-KYC wallet, send crypto overseas, or interact with new tokens, you’re on your own. The blockchain sanctions rules aren’t going away. They’re getting tighter. And the list keeps growing. Some addresses stay on it for years. Others get added overnight.

Below, you’ll find real cases, practical checks, and clear explanations of how this affects everyday crypto use. No jargon. No fluff. Just what you need to know to stay clear of trouble—and understand why some tokens vanish from exchanges, why some wallets freeze, and why certain airdrops suddenly disappear.