In this chapter of Global Investigations Review: The Guide to Sanctions (Sixth Edition), authors Timothy O'Toole, Collmann Griffin, Melissa Burgess, Annie Cho,* and Rebecca Tweedie* provide a comprehensive update on the practical challenges and legal developments surrounding cyber-related sanctions, with a renewed focus on digital currency. The authors highlight how recent targeting and enforcement trends reflect the Office of Foreign Assets Control's (OFAC) increasing scrutiny of the digital currency sector, such as in cases involving ransomware attacks and virtual asset service providers. The article also discusses the implications of Van Loon v. Treasury, which found that certain "smart contracts" were outside the definition of "property" or "services" that OFAC is authorized to block. Finally, the authors provide practical considerations to mitigate cyber-related sanctions risks, including preventative measures and the potential benefits of cooperation with the U.S. government in the cybersecurity context.

*Former Miller & Chevalier attorney