The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform facilitated the transfer of hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps (IRGC). Treasury also sanctioned BitBank’s software developer, Pishtaz Simorgh Electronic Trade Company, and three associates of Iranian financier Babak Zanjani. The action forms part of the U.S. government’s “Operation Economic Outcast,” which seeks to disrupt Iran’s financial, commercial and logistical networks.
Key Overview
- Treasury sanctioned Iranian crypto exchange BitBank.
- The agency alleges BitBank facilitated hundreds of millions of dollars in Bitcoin transfers to the IRGC.
- BitBank’s software developer and three associates of Babak Zanjani were also designated.
- Treasury says Zanjani used BitBank between June and July to transfer Bitcoin to the IRGC.
- The action is part of Operation Economic Outcast targeting Iran’s networks.
- BitBank is separate from Japan-based bitbank, inc.
U.S. Treasury Sanctions Iranian Crypto Exchange
The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform facilitated the transfer of hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps.
The Office of Foreign Assets Control (OFAC) also designated Pishtaz Simorgh Electronic Trade Company, the software developer behind BitBank, along with three associates of Iranian financier Babak Zanjani.
The individuals named were Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
According to a Treasury release, BitBank is a “priority digital asset venture” controlled by Zanjani. Zanjani had previously been sanctioned by OFAC over an alleged network of companies involved in laundering money and evading sanctions on Iran.
Treasury alleges that between June and July, Zanjani used BitBank to move hundreds of millions of dollars in Bitcoin to the IRGC.
The agency also alleged that the Hormuz Safe Marine Services Authority has used the exchange since June to transfer payments to the Iranian regime.
Treasury Targets BitBank Network
The three individuals designated alongside BitBank and Pishtaz Simorgh are described by Treasury as executives within Zanjani’s wider network.
Treasury separately accused Hossein Ali Zaker Hossein of brokering digital asset transactions that reached the IRGC.
Treasury Secretary Scott Bessent said the designations demonstrate that cryptocurrency-based financing of the Iranian regime remains within the reach of U.S. sanctions enforcement.
The BitBank designation extends a series of U.S. actions targeting Zanjani’s network, following earlier sanctions in January and July against other exchanges and associated companies.
Part of Operation Economic Outcast
The latest designations form part of the Treasury’s “Operation Economic Outcast,” an initiative intended to isolate Iran economically and disrupt its global financial, commercial and logistical networks.
According to Treasury, the strategy has targeted Iran’s illicit oil trade, financial intermediaries, exchange houses, shipping, aviation and front companies.
The action comes after several other U.S. measures involving Iranian cryptocurrency activity.
In August, the U.S. sanctioned digital asset exchanges Shelbit and Aban Tether, accusing them of assisting the Iranian regime in sanctions evasion.
In June, Treasury sanctioned four crypto exchanges, including Nobitex, described in the source as Iran’s largest exchange.
In July, the U.S. government also ordered the freezing of more than $130 million in USDt held in wallets linked to Iran.
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BitBank Separate From Japanese Exchange
The Iranian BitBank targeted by Treasury is separate from bitbank, inc., a fully licensed cryptocurrency exchange founded in Japan in 2014 and acquired by SBI Holdings in June.
Treasury’s designation identifies the sanctioned BitBank as having been established in 2024.
The distinction is relevant because the two entities have similar names but are separate businesses.
Cryptocurrency and Iran’s Financial Restrictions
The BitBank designation comes as Iran has reportedly sought ways to mitigate the effects of tightening financial restrictions.
Earlier this month, the Financial Times reported that Iran’s central bank eased foreign currency controls to encourage businesses to bring overseas earnings back into the country, including through cryptocurrency.
Treasury’s action also follows a separate U.S. Justice Department case involving cryptocurrency allegedly connected to Iranian oil sales.
The developments highlight the continued use of digital assets within the broader enforcement of U.S. sanctions against Tehran.
Outlook
The U.S. Treasury’s designation places BitBank, its software developer and three individuals within the scope of U.S. sanctions action. Treasury alleges that BitBank was used to transfer hundreds of millions of dollars in Bitcoin to the IRGC and that the exchange was also used for payments connected to the Iranian regime.
The action adds to a series of U.S. measures targeting Iranian cryptocurrency exchanges, financial intermediaries and networks accused of sanctions evasion. Further developments will depend on continued U.S. enforcement actions and Iran’s efforts to navigate tightening financial restrictions.
FAQs
1. Why did the U.S. Treasury sanction BitBank?
The U.S. Treasury alleges that BitBank facilitated the transfer of hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps (IRGC).
2. Who else was sanctioned alongside BitBank?
Treasury also designated Pishtaz Simorgh Electronic Trade Company, BitBank’s software developer, and three associates of Babak Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
3. Is Iran’s BitBank the same as Japan’s bitbank?
No. The Iranian BitBank targeted by Treasury is separate from bitbank, inc., a fully licensed Japanese cryptocurrency exchange founded in 2014. Treasury identifies the sanctioned BitBank as having been established in 2024.
4. What is Operation Economic Outcast?
Operation Economic Outcast is the Treasury initiative described in the source as targeting Iran’s financial, commercial and logistical networks. Its targets have included illicit oil trade, financial intermediaries, exchange houses, shipping, aviation and front companies.
Sources: The Block, The Times of Israel, TradingView
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