US Treasury Sanctions Iranian Crypto Exchange Over Alleged Bitcoin Transfers to IRGC
The US Treasury Department has imposed sanctions on Iranian crypto exchange BitBank, alleging that the platform helped process Bitcoin payments connected to a maritime scheme in the Strait of Hormuz and move funds to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The Office of Foreign Assets Control (OFAC) announced the designations on Thursday, naming BitBank, its developer Pishtaz Simorgh Electronic Trade Company and three associates of Iranian financier Babak Zanjani. Treasury described the entities as important parts of Iran’s cryptocurrency-based sanctions evasion network.
According to the department, the Hormuz Safe Marine Services Authority used BitBank as recently as June to transfer payments received from ships operating under the Strait of Hormuz maritime scheme to the IRGC. Treasury also linked the exchange to a network allegedly used by Zanjani to move hundreds of millions of dollars worth of Bitcoin to the Iranian military organization.
Strait of Hormuz Payment Scheme
US authorities have previously accused Hormuz Safe of operating an IRGC-backed system that requires vessels passing through the Strait of Hormuz to purchase maritime insurance. The alleged coverage includes protection against seizures by Iran itself.
Treasury said the latest sanctions demonstrate that cryptocurrency infrastructure used to support Iran’s financial activities remains within OFAC’s reach.
“Today’s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach,” US Treasury Secretary Scott Bessent said.
The action forms part of Washington’s wider campaign to restrict Iran’s access to the international financial system. US authorities have increasingly focused on crypto exchanges and digital asset wallets they believe are helping Iranian entities bypass financial restrictions.
BitBank Name Confusion
The sanctioned BitBank is not the same company as bitbank, inc., a Japanese cryptocurrency exchange founded in 2014. The Japanese platform was acquired by SBI Holdings in June.
Treasury’s designation identifies the Iranian BitBank as an exchange established in 2024, separating it from the Japanese business.
More Crypto Sanctions Against Iran
The US government has taken several other steps against Iranian crypto platforms in recent months. In August, OFAC sanctioned Shelbit and Aban Tether over alleged assistance with sanctions evasion. In June, the department targeted four Iranian crypto exchanges, including Nobitex, which Treasury identified as the country’s largest.
US authorities also ordered the freezing of more than $130 million in Tether’s USDt held in wallets linked to Iran in July.
The sanctions come as Iran seeks ways to reduce the impact of tightening financial restrictions. Earlier this month, the Financial Times reported that Iran’s central bank had eased foreign currency controls to encourage businesses to repatriate overseas earnings, including through cryptocurrency.
The latest Treasury action highlights the growing role of digital assets in US efforts to monitor and restrict Iran’s financial networks.