U.S. Sanctions Tehran Crypto Exchange Over Strait of Hormuz Toll Payments

U.S. Treasury targets BitBank exchange

The U.S. Treasury has sanctioned BitBank, a cryptocurrency exchange based in Tehran. An exchange is a digital platform where people can buy and sell cryptocurrencies. Officials claim the exchange moved hundreds of millions of dollars in Bitcoin to Iran’s Revolutionary Guard Corps and processed fees collected from ships in the Strait of Hormuz.

The Treasury also sanctioned Pishtaz Simorgh Electronic Trade Company. This is the software firm that built the BitBank platform. These actions are part of an effort to block the Iranian regime from using digital assets to fund its activities.

Key numbers behind the sanctions

• Between $1 million and $2 million: The amount charged to tankers for "safe passage" through the Strait of Hormuz.
• Hundreds of millions: The total value in Bitcoin allegedly moved to the Revolutionary Guard Corps.
• 2024: The year BitBank was established in Tehran.

Official statements from the U.S. government

The Office of Foreign Assets Control (OFAC) designated BitBank as a sanctioned entity on Thursday. Treasury Secretary Scott Bessent stated that the designations make it clear that using cryptocurrencies to finance the Iranian regime is within the government's reach. The U.S. considers the Revolutionary Guard Corps a terrorist organization.

The role of ship passage fees

Since June, a group called the Hormuz Safe Marine Services Authority has been charging ships for passage through the Strait of Hormuz. This group, which was sanctioned in July, began using BitBank to transfer the money it collected to regime entities. The authority claims to provide insurance and traffic control to ships that pay.

The Treasury Department noted that shipping lawyers have called this arrangement a violation of international laws regarding the sea. The Strait of Hormuz is considered one of the most important oil shipping routes in the world.

Confirmed impacts of the sanctions

The new sanctions mean that any property BitBank owns in the United States is now frozen. Americans are also banned from doing any business with the exchange. Furthermore, foreign financial institutions that process transactions for BitBank could be cut off from the U.S. financial system.

What remains unclear

While the Treasury Department has named the exchange and its developer, it has not yet identified any specific cryptocurrency wallet addresses. A wallet is a digital tool used to store or send crypto assets. Without these specific addresses, it may be harder for other platforms to block transactions automatically.

Why this matters for global shipping

The Strait of Hormuz is a vital chokepoint for global oil supplies. By targeting the financial infrastructure used to collect fees from ships, the U.S. is attempting to stop Iran from profiting from the passage of international vessels. It also signals that the U.S. is monitoring how digital assets are used to bypass traditional financial rules.

Sources

• CoinDesk