Key points

  • OFAC designated Iranian digital-asset exchange BitBank and its software developer under Executive Order 13902.
  • Treasury alleges BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC between June and July.
  • The action blocks U.S.-linked property and generally bars U.S. persons from transactions involving the designated parties.

The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging the platform helped transfer hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps and processed payments connected to shipping through the Strait of Hormuz. The Office of Foreign Assets Control announced the designation on September 17 as part of Operation Economic Outcast, a broader campaign targeting revenue and financial channels used by the Iranian government.

Treasury targets exchange and developer

OFAC designated BitBank and its software developer, Pishtaz Simorgh Electronic Trade Company, under Executive Order 13902 for operating in Iran's digital-asset sector. It also designated three associates of Iranian financier Babak Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury said Zanjani controls BitBank and has promoted the exchange since at least 2024. Pishtaz Simorgh is a subsidiary of Dot One Value Creation Group, which OFAC had previously designated.

Related reporting: U.S. Treasury sanctions BitBank over alleged Bitcoin transfers to IRGC

Bitcoin transfers and Hormuz payments

Treasury alleges Zanjani used BitBank between June and July to facilitate transfers of hundreds of millions of dollars' worth of Bitcoin to the IRGC. It also said the previously designated Hormuz Safe Marine Services Authority has used BitBank since June to transfer payments it received to the Iranian government. Reuters and Decrypt separately reported the designation and Treasury's account. The claims describe the U.S. government's basis for sanctions; the announcement is an administrative action, not a criminal judgment against the exchange or the named individuals.

What the designation does

Property and interests in property of the designated parties that are in the United States, or controlled by U.S. persons, are blocked and must be reported to OFAC. Entities owned 50% or more by one or more blocked persons are also blocked. Unless licensed or exempt, U.S. persons are generally prohibited from transactions involving the designated parties. Treasury also warned that non-U.S. financial institutions and other companies can face sanctions exposure for certain dealings with blocked persons or for causing U.S. sanctions violations.

Crypto enforcement expands

The action extends Washington's use of sector-based sanctions against crypto infrastructure rather than focusing only on individual wallets or transactions. Treasury said the authority covering Iran's digital-asset sector was expanded in August and has since been used against exchanges, developers and facilitators. That approach treats software providers and corporate operators as part of the same financial network when the government believes their services enable prohibited transfers. It also raises compliance risks for exchanges and counterparties that may interact with linked addresses or entities outside Iran. For regulated platforms, wallet screening alone may be insufficient if corporate ownership, developers or payment intermediaries connect a transaction to a blocked network.

What comes next

The practical effect will depend on BitBank's exposure to U.S.-linked assets, counterparties and infrastructure, as well as whether other jurisdictions or service providers take parallel steps. OFAC maintains a process for seeking removal from its sanctions lists, and Treasury says the objective of sanctions is to change behavior rather than impose punishment for its own sake. For crypto businesses, the case reinforces the need to screen customers, beneficial owners and transaction flows, particularly where maritime payments and sanctioned jurisdictions intersect. Any challenge to the designations or additional enforcement action would provide the next concrete test of Treasury's claims and reach.

Sources

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