US sanctions Iranian crypto exchange BitBank and its software developer over alleged IRGC Bitcoin transfers
US targets BitBank over IRGC Bitcoin transfers
The United States has sanctioned Iranian cryptocurrency exchange BitBank, its software developer, and three individuals linked to a network tied to Iranian financier Babak Zanjani.
On September 17, the Treasury Department's Office of Foreign Assets Control (OFAC) said Zanjani used BitBank between June and July to facilitate hundreds of millions of dollars in Bitcoin transfers to the Islamic Revolutionary Guard Corps (IRGC).
Key points
- OFAC sanctioned BitBank, Pishtaz Simorgh Electronic Trade Company (which developed BitBank's software), and three people associated with Zanjani's network.
- Treasury said Hormuz Safe Marine Services Authority, previously sanctioned over an alleged maritime-payment scheme, had used BitBank since June to move receipts to the Iranian government.
- The designations were made under Executive Order 13902, which Treasury has expanded to cover Iran's digital-asset sector.
- The action is part of Operation Economic Outcast, a campaign launched August 24 to cut Iran off from financial channels used to move oil revenue, evade sanctions, and fund the IRGC.
What Treasury says
Treasury Secretary Scott Bessent said the move shows that crypto-based financing is “not beyond OFAC’s reach,” warning that parties supporting the Iranian government could also become sanctions targets.
Treasury said Zanjani publicly promoted BitBank beginning in at least 2024, and several companies tied to his sanctions-evasion network listed the exchange as a partner.
Targeting the wider network
Pishtaz Simorgh is a subsidiary of Dot One Value Creation Group, which OFAC sanctioned in July as part of another action against Zanjani's commercial network. Treasury said Dot One sits within a portfolio spanning financial services, digital assets, transportation, and infrastructure that Zanjani used to obscure ownership and move money.
Mohammad Mahdi Zaker Hossein, chief executive of Pishtaz Simorgh and a Dot One manager, was sanctioned for acting on behalf of the software company. Seyed Adel Heidari, vice chairman of Dot One's board, was designated for acting on behalf of Dot One. Hossein Ali Zaker Hossein was sanctioned for acting for Zanjani, with Treasury alleging he participated in much of Zanjani's sanctions-evasion activity, including Iranian oil exports and digital-asset transactions, and brokered crypto transfers that ultimately reached the IRGC.
TRM Labs investigation
Blockchain intelligence firm TRM Labs said the latest designations extend an investigation it began around Zedcex and Zedxion, two crypto exchanges sanctioned with Zanjani in January. TRM said it initially identified about $1 billion in IRGC-linked activity tied to those platforms before broadening its analysis into the companies, payment systems, and digital infrastructure surrounding them.
TRM said BitBank and Pishtaz Simorgh sit within the same network that includes Dot One, ZedPay, transportation companies, the MyDot social platform, DOTO digital asset, and Dot One Smart Chain.
What is confirmed
It is confirmed that the US Treasury sanctioned BitBank, its software developer, and three individuals on September 17, 2026, as reported by CryptoSlate. Treasury's allegations about Zanjani's use of BitBank and the involvement of the IRGC are official accusations, not proven facts in a court.
What is still unclear
The total amount of Bitcoin transferred and the exact dates of those transfers are not fully detailed in the source. The specific role of each sanctioned individual in the alleged scheme is only partly described.
Why it matters
The action shows the US is increasingly targeting not just crypto exchanges but also their software developers and corporate executives, suggesting a broader effort to disrupt the infrastructure that supports alleged sanctions evasion. It also warns that companies outside the US doing business with these entities may face secondary sanctions.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.