TLDR
- The U.S. Treasury sanctioned BitBank over alleged Bitcoin transfers linked to Iran’s IRGC.
- OFAC said BitBank moved hundreds of millions of dollars in Bitcoin between June and July.
- Treasury also sanctioned BitBank’s software developer and three associates tied to Iranian financier Babak Zanjani.
- The action forms part of Operation Economic Outcast, a broader U.S. campaign targeting Iranian financial networks.
- U.S. authorities have increased pressure on Iranian crypto platforms accused of helping sanctioned entities move funds.
The U.S. Treasury Department sanctioned Iranian crypto exchange BitBank on September 17, accusing it of helping move Bitcoin payments to Iran’s Islamic Revolutionary Guard Corps. The Office of Foreign Assets Control said the transfers involved hundreds of millions of dollars and formed part of a sanctions evasion network linked to Iranian financier Babak Zanjani.
Treasury Targets BitBank and Developer
OFAC also designated BitBank developer Pishtaz Simorgh Electronic Trade Company. The agency named three Zanjani associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury said these people and companies supported a digital asset network used to move funds outside financial channels.
Treasury described BitBank as a priority digital asset venture controlled by Zanjani. OFAC had already sanctioned him over his role in businesses that U.S. authorities say helped Iran move money and avoid restrictions. The action places BitBank and its developer under Executive Order 13902.
Treasury said Zanjani used BitBank between June and July to send hundreds of millions of dollars in Bitcoin to the IRGC. The agency also said Hormuz Safe Marine Services Authority has used BitBank since June to transfer payments received for the Iranian regime.
Hormuz Safe offers maritime services linked to ships crossing the Strait of Hormuz and accepts digital assets. U.S. officials accused the service of collecting payments for Iran. Treasury said the latest sanctions target the financial network supporting those transfers and other crypto-based payment routes.
Operation Economic Outcast Widens Pressure
The BitBank action falls under Operation Economic Outcast, which Treasury announced on August 24. The campaign targets networks that U.S. authorities say help Iran sell oil, move money, fund state-linked groups and avoid international sanctions through banks, companies and digital assets.
The action follows earlier measures against Iranian crypto exchanges and financial networks. In a related case this week, the U.S. Justice Department sought nearly $61 million in crypto tied to alleged illegal Iranian oil sales. The complaint said two China-based companies used Binance accounts to move funds connected to Iranian oil trading and IRGC-linked recipients.
OFAC said U.S. persons must block covered property and report it, while firms owned at least 50% by blocked parties also directly face restrictions. These rules apply unless OFAC grants a license or exemption.
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