Next time someone claims crypto is uniquely dangerous for sanctions evasion or terror financing, remember this story: in 2023, Iran-backed militias exploited Visa & Mastercard networks to move billions using prepaid cards, cross-border arbitrage, and FX gaps in Iraq.

$450M+ in profits for U.S.-sanctioned groups. So while Visa/Mastercard themselves didn’t violate sanctions (since their Iraqi partners weren’t sanctioned at the time), the scheme functionally enabled sanctioned entities to circumvent U.S. restrictions. All of this happened using traditional financial plumbing considered safe and compliant.