Key Points
- Iranian cryptocurrency exchange BitBank has been sanctioned by the U.S. Treasury for allegedly facilitating Bitcoin transfers worth hundreds of millions to Iran’s Revolutionary Guard
- The exchange processed payments through the Hormuz Safe platform, which collects fees from vessels passing through the Strait of Hormuz
- OFAC also designated Iranian financier Babak Zanjani along with three of his associates
- Sanctions extend to Pishtaz Simorgh Electronic Trade Company, the firm that developed BitBank’s software
- The designations are part of “Operation Economic Outcast,” an expanded U.S. effort to dismantle Iran’s cryptocurrency infrastructure
The US Treasury Department announced sanctions against Iranian cryptocurrency exchange BitBank on Thursday, alleging the platform facilitated the transfer of hundreds of millions of dollars worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps.
The Office of Foreign Assets Control identified BitBank as a critical component of Iran’s digital currency-based sanctions circumvention infrastructure. The designation also targets Pishtaz Simorgh Electronic Trade Company, which developed the exchange’s software, as well as three individuals connected to Iranian businessman Babak Zanjani.
Zanjani had previously been placed on OFAC’s sanctions list for operating a financial network accused of money laundering and assisting Iran in evading international economic sanctions.
The Mechanics Behind the Alleged Bitcoin Scheme
According to Treasury officials, Zanjani utilized BitBank during June and July to transfer Bitcoin valued at hundreds of millions of dollars to the IRGC. The Hormuz Safe Marine Services Authority, an entity associated with the Revolutionary Guard, began using BitBank in June to handle these cryptocurrency transactions.
Hormuz Safe runs a controversial program requiring vessels transiting the Strait of Hormuz to purchase maritime insurance coverage, which includes protection from potential seizure by Iranian forces. These insurance payments are settled using Bitcoin.
According to Iranian media reports from May, the regime aimed to generate over $10 billion in revenue through this platform, which was introduced following a period of heightened tensions between the United States and Iran.
Treasury Secretary Scott Bessent delivered an unambiguous warning: “If you support the Iranian regime, the Department of the Treasury will sanction you.”
The Islamic Revolutionary Guard Corps has been classified as a terrorist organization by the United States, the European Union, and numerous other international governments.
Sanctions Represent Escalating U.S. Enforcement Campaign
Thursday’s enforcement action represents a continuation of broader efforts rather than a standalone measure. The sanctions fall under “Operation Economic Outcast,” an initiative that commenced on August 24 as an expansion of the previous “Economic Fury” campaign.
OFAC had previously sanctioned Nobitex, Iran’s premier cryptocurrency exchange, in June, along with Wallex, Bitpin, and Ramzinex. Treasury officials stated that Nobitex handled over half of all digital asset flows into Iran during 2025.
Two additional exchanges, Shelbit and Aban Tether, faced sanctions in August, both accused of facilitating the Iranian government’s sanctions evasion activities.
In July, U.S. authorities ordered the seizure of more than $130 million in USDT contained in cryptocurrency wallets connected to Iranian entities.
According to Treasury documentation, BitBank was founded in 2024. The Iranian exchange is unrelated to bitbank, inc., a regulated Japanese cryptocurrency platform established in 2014 that became part of SBI Holdings through acquisition in June.
OFAC has not yet issued any public statement in response to inquiries seeking additional information about these latest designations.
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