Key points

  • OFAC designated BitBank, its software developer Pishtaz Simorgh and three associates of Iranian financier Babak Zanjani.
  • Treasury alleged that BitBank facilitated hundreds of millions of dollars in Bitcoin transfers to the IRGC between June and July 2026.
  • The action blocks U.S.-linked property interests and generally bars U.S. persons from transactions involving designated parties unless authorized.

The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that it formed part of a digital-asset network used to move funds for the Iranian government and the Islamic Revolutionary Guard Corps. The Office of Foreign Assets Control announced the designations on September 17 as part of Operation Economic Outcast, a broader campaign aimed at Iran's financial, commercial and logistical channels.

What Treasury designated

OFAC designated BitBank, its software developer Pishtaz Simorgh Electronic Trade Company and three associates of sanctioned Iranian financier Babak Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury described the entities and individuals as components of what it called Iran's digital-assets-based sanctions-evasion infrastructure. The designations were made under Executive Order 13902, which Treasury said now covers Iran's digital-asset sector.

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The alleged Bitcoin transfers

Treasury alleged that Zanjani used BitBank between June and July 2026 to facilitate transfers of hundreds of millions of dollars' worth of Bitcoin to the IRGC. It also said the Hormuz Safe Marine Services Authority, which OFAC had previously designated, used BitBank to transfer payments it received to the Iranian government beginning in June. Reuters independently reported the sanctions announcement and the government's description of BitBank as a significant part of Iran's crypto-based sanctions-evasion system.

Connections to Zanjani's network

According to Treasury, BitBank has been promoted by Zanjani since at least 2024 and listed as a partner by other companies in his network. Pishtaz Simorgh, the developer behind BitBank's software, is a subsidiary of the previously sanctioned Dot One Value Creation Group. Treasury said Hossein Ali Zaker Hossein was involved in oil exports and digital-asset transfers, while Mohammad Mahdi Zaker Hossein serves as Pishtaz Simorgh's chief executive and Seyed Adel Heidari is vice chairman of Dot One's board.

What the sanctions mean

The action blocks property and interests in property belonging to the designated parties when they are in the United States or controlled by U.S. persons. Entities owned 50 percent or more, directly or indirectly, by one or more blocked persons are also blocked. Unless an exemption or OFAC license applies, U.S. persons are generally prohibited from transactions involving those interests. Treasury also warned that financial institutions and non-U.S. parties can face sanctions exposure when they facilitate prohibited activity or cause U.S. persons to violate the rules.

Part of a wider enforcement campaign

Operation Economic Outcast was announced in August and targets channels Treasury says support Iranian oil sales, sanctions evasion and state-linked financing. OFAC had already sanctioned Zanjani and two digital-asset projects, Zedcex Exchange Limited and Zedxion Exchange Limited, in January. A July action added other Zanjani-linked companies and executives in Iran, Turkey and the United Arab Emirates. The latest step focuses on the exchange infrastructure and personnel alleged to support those networks.

What remains unresolved

Treasury's release states the U.S. government's allegations and the legal consequences of the designations; it is not a judicial finding. Neither the Treasury announcement nor Reuters' report included a response from BitBank, Pishtaz Simorgh or the three named individuals. The practical effect will depend on enforcement, the reach of counterparties with U.S. exposure and whether designated parties seek administrative reconsideration or other legal remedies.

Sources

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