OFAC SDN List Screening for Crypto Wallets
The OFAC SDN List contains 14,000+ crypto wallet addresses as of 2026. Transacting with any of them — even unknowingly — can trigger fines exceeding $1 million per violation. Here is what crypto businesses need to know and how to build automatic screening.
What the SDN List Contains
OFAC first listed crypto addresses in 2018, starting with two Bitcoin addresses linked to Iranian nationals. By 2026, the list includes thousands of addresses across Bitcoin, Ethereum, Tron, Litecoin, XRP, Zcash, and other chains.
Addresses end up on the SDN List through several channels: known ransomware operators (Lazarus Group, Evil Corp, REvil), darknet market operators, terrorist financing entities, individuals under country-specific sanctions (Iran, Russia, North Korea, Cuba, Syria), and wallets linked to major exchange hacks.
One sanctioned entity can control hundreds of wallets. OFAC designates clusters of addresses together. CryptoAML screens against both directly listed addresses and known linked addresses derived from blockchain tracing.
How Violations Happen
Most OFAC violations in crypto are not intentional. A customer deposits from a wallet that received funds from an SDN-listed address two hops ago. An OTC desk processes a wire from a counterparty in a sanctioned jurisdiction. A payment processor routes through an exchange that hasn't screened its liquidity sources.
OFAC applies strict liability for civil violations: you don't need to have known about the sanctions connection to be fined. The only defense is having a robust screening program that demonstrates due diligence.
@scorechain_amlbot checks not just direct SDN matches but also indirect exposure — wallets that received funds from sanctioned sources within 1-3 hops. This is the level of analysis OFAC expects from sophisticated crypto businesses.
Real OFAC Enforcement Cases
| Company | Fine | Violation |
|---|---|---|
| BitGo / BitPay (2020) | $507,000 | Processed transactions for users in sanctioned jurisdictions (Crimea, Cuba, Iran, Sudan) |
| Kraken (2022) | $362,000 | Provided services to users in Iran — apparent violations of OFAC sanctions |
| BitPay (2021) | $507,000 | 19 transactions involving digital currency wallets in sanctioned territories |
| Poloniex (2021) | $10,390,000 | Transactions with users in Crimea, Cuba, Iran, Sudan, and Syria |
| Unnamed DeFi platform (2023) | $6,000,000+ | Facilitating transactions involving OFAC-listed wallet addresses |
How to Integrate OFAC Screening
There are three integration levels depending on your team size and transaction volume:
Telegram Bot (no integration)
Use @scorechain_amlbot for manual checks. Compliance officer pastes a wallet address, gets risk score and SDN flag in 8 seconds. Suitable for teams doing up to 50 checks per day.
REST API (recommended for scale)
POST a wallet address to our API endpoint, receive a JSON response with risk score, SDN match status, category flags, and source-of-funds trace. Integrate directly into onboarding flows, transaction approval queues, or periodic re-screening jobs.
Batch CSV Upload
Upload a file of wallet addresses for bulk re-screening of your existing customer base. The @ScorechainAML_bot handles batch requests up to 10,000 addresses. Results delivered within minutes.
Screen Against OFAC Now
@scorechain_amlbot checks wallets against OFAC SDN, UN consolidated list, EU sanctions, and OFSI in one request.
Try @scorechain_amlbotAPI DocumentationOFAC Compliance Checklist
- Screen all new wallets at onboarding
- Re-screen customer wallets weekly
- Screen at each withdrawal/deposit
- Document all screening results
- File SAR within 30 days of SDN match
- Block/freeze matched accounts immediately
- Update SDN list within 24h of OFAC notice
OFAC Screening: FAQ
What is the OFAC SDN List?
SDN stands for Specially Designated Nationals. OFAC (Office of Foreign Assets Control) maintains this list of individuals, entities, and crypto wallet addresses subject to US sanctions. Anyone transacting with SDN-listed parties — including crypto wallets — may face civil or criminal penalties, regardless of where they're located. The list contains 14,000+ crypto wallet addresses as of 2026.
Which crypto wallet formats does OFAC sanction?
OFAC lists Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), XRP, Zcash (ZEC), Dash, and other blockchain addresses on the SDN List. Sanctions are applied at the address level — a single sanctioned entity may have dozens of listed addresses across multiple chains.
How often is the SDN List updated?
OFAC updates the SDN List on business days — typically once or twice per day when new designations occur. During active enforcement periods (e.g., after major exchange hacks or ransomware events), updates can happen within hours. CryptoAML.ai pulls SDN updates every 24 hours, and @scorechain_amlbot always checks against the current version.
Does OFAC apply to non-US companies?
Yes. If your platform uses US-dollar settlement, has US investors, employs US citizens, or routes traffic through US infrastructure, OFAC jurisdiction likely applies. More broadly, OFAC has taken enforcement actions against non-US entities that facilitated transactions with sanctioned parties. The safe approach: screen against SDN regardless of your domicile.
What counts as a violation?
Any 'transaction' with an SDN-listed party: onboarding them as a customer, processing their deposits or withdrawals, holding their funds, or sending them payments. Even indirect facilitation can trigger enforcement. OFAC applies strict liability for civil violations — intent is irrelevant for fines.
How do we integrate OFAC screening into our onboarding?
The fastest path: use the CryptoAML REST API to check wallet addresses at account creation and before each transaction. For teams without engineering resources, @scorechain_amlbot and @ScorechainAML_bot handle manual checks via Telegram in 8 seconds. For batch re-screening of existing customers, upload a CSV of addresses via the API.