US Treasury Sanctions Iranian Crypto Exchange BitBank Over Bitcoin Transfers to IRGC
The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform was used to transfer hundreds of millions of dollars worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The sanctions, announced on September 17, target BitBank as well as its software developer, Pishtaz Simorgh Electronic Trade Company, and three associates of Iranian financier Babak Zanjani. Treasury identified BitBank as a digital asset venture controlled by Zanjani and said the exchange formed part of a wider network used to facilitate sanctions evasion.
According to data shared by Coin Bureau, Treasury said BitBank processed payments connected to the Hormuz Safe Marine Services Authority, an Iranian entity that U.S. authorities have linked to a scheme involving commercial vessels transiting the Strait of Hormuz.
Treasury Links BitBank to Bitcoin Transfers
The Treasury said Zanjani used BitBank between June and July 2026 to facilitate the transfer of hundreds of millions of dollars worth of Bitcoin to the IRGC. The department also said that, since June, the Hormuz Safe Marine Services Authority had used BitBank to transfer payments it received to the Iranian regime.
The allegations place BitBank within a broader financial network that U.S. authorities have been targeting throughout 2026. Treasury previously sanctioned Zanjani-linked digital asset entities and facilitators on January 30 and July 24.
Treasury said Zanjani has promoted BitBank on his social media accounts since at least 2024 and that companies within his wider network have identified the exchange as a partner.
Hormuz Safe Connected to Digital Asset Payments
The sanctions also relate to the way Iranian authorities have sought to collect payments associated with maritime activity around the Strait of Hormuz.
Treasury previously designated the Hormuz Safe Marine Services Authority in July, describing it as part of an Iranian scheme involving maritime insurance and other services for vessels transiting the strategic waterway. U.S. authorities said the entity accepted payments in Bitcoin and other digital assets.
Treasury's latest action alleges that BitBank provided infrastructure for transferring payments associated with the scheme to Iranian state-linked recipients.
The development illustrates how U.S. sanctions enforcement is increasingly extending to cryptocurrency exchanges and related digital infrastructure that authorities allege are being used to move funds outside traditional financial channels.
Treasury Targets BitBank Developer and Associates
The Office of Foreign Assets Control also designated financial Pishtaz Simorgh Electronic Trade Company, which Treasury identified as BitBank's software developer and a subsidiary of the previously sanctioned Dot One Value Creation Group.
Three individuals were designated alongside the company: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury described them as executives and associates within Zanjani's broader network and linked their activities to digital asset transactions and sanctions-evasion operations.
The latest action was carried out under Executive Order 13902 as part of Operation Economic Outcast, the Treasury's broader campaign targeting Iran's economic and financial networks. Treasury said the designations are intended to disrupt digital asset infrastructure used to support Iranian state-linked entities.
The sanctions announced on September 17 extend the U.S. campaign beyond previously targeted exchanges and entities connected to Zanjani, placing BitBank and its supporting infrastructure directly under OFAC restrictions.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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