U.S. Treasury Sanctions Iranian Exchange BitBank Over Bitcoin Transfers to IRGC
U.S. Targets Iranian Exchange in New Sanctions
The U.S. Department of the Treasury has designated BitBank, an Iranian cryptocurrency exchange, as part of a broader campaign against Iran. The sanctions were announced in a Thursday statement.
This action is part of Operation Economic Outcast, which the Treasury describes as the Trump administration's whole-of-government economic effort against Iran and its supporters.
Who Was Sanctioned
The Treasury targeted Iranian financier Babak Zanjani, BitBank's software developer Pishtaz Simorgh Electronic Trade Company, and three of Zanjani's associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
The sanctions aim to disrupt the "architecture Zanjani built to launder funds," the Treasury said.
Reason for the Sanctions
According to the Treasury, since June, the Iranian Hormuz Safe Marine Services Authority has used BitBank to move bitcoin to the Iranian regime.
Secretary of the Treasury Scott Bessent stated: "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. If you support the Iranian regime, the Department of the Treasury will sanction you."
Background on Iran and Crypto
Iran has used cryptocurrencies, including bitcoin, to work around U.S. economic penalties. Earlier this year, Iran launched a bitcoin-backed insurance service for its shipping companies.
In July, the U.S. said it had frozen crypto linked to Iran, mostly in the form of Tether's stablecoin. A stablecoin is a type of cryptocurrency designed to hold a steady value. Stablecoins like Tether's USDT can be frozen by the issuing company. Bitcoin, however, is decentralized and has no single issuer, meaning it cannot be frozen in the same way.
The Treasury's Office of Foreign Assets Control (OFAC) said in July that Iran had been dodging sanctions by accepting bitcoin payments from ships passing through the Strait of Hormuz. OFAC said Hormuz Safe, developed by Iran's Ministry of Economy, "accepts payment in Bitcoin and other digital assets" to bypass sanctions.
What the Treasury Says Next
The Treasury said it will continue to target not only Iran's digital asset ecosystem but also international entities and actors that help facilitate it.
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.
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