US Treasury sanctions Iranian crypto exchange BitBank for IRGC Bitcoin transfers
In brief
- OFAC sanctioned BitBank and Pishtaz Simorgh on September 17 for facilitating IRGC Bitcoin transfers.
- Babak Zanjani allegedly used BitBank to move hundreds of millions in Bitcoin to the IRGC between June and July.
- Treasury deepened Operation Economic Outcast campaign, launched August 24, to sever Iran's financial access.
- Hormuz Safe Marine Services Authority used BitBank to move government receipts since June.
- Treasury Secretary Scott Bessent confirmed crypto financing remains within OFAC's enforcement reach.
The BitBank designation
OFAC sanctioned BitBank alongside Pishtaz Simorgh Electronic Trade Company, which developed the exchange's software. Iranian financier Babak Zanjani, already under US sanctions, allegedly used BitBank between June and July to move the funds to the IRGC. Zanjani publicly promoted BitBank beginning in at least 2024.
The Treasury also identified a second payment stream. Hormuz Safe Marine Services Authority, previously sanctioned over an alleged maritime-payment scheme in the Strait of Hormuz, used BitBank since June to move receipts to the Iranian government. Treasury did not equate that activity with the IRGC total in its statement.
Pishtaz Simorgh is a subsidiary of Dot One Value Creation Group, which OFAC sanctioned in July. Mohammad Mahdi Zaker Hossein, the chief executive of Pishtaz Simorgh and a Dot One manager, was also sanctioned for acting on behalf of the parent entity.
Operation Economic Outcast escalates
The designations are part of Operation Economic Outcast, a campaign Treasury launched August 24 to cut Iran off from financial channels used to move oil revenue, evade sanctions and fund the IRGC. Treasury has expanded the operation across Iran's digital-asset sector over recent months.
In June, OFAC sanctioned Nobitex, Wallex, Bitpin and Ramzinex. The pressure continued in August when OFAC designated Shelbit and Aban Tether. BitBank now represents the latest target in a widening enforcement effort.
"Treasury Secretary Scott Bessent said the move demonstrates that crypto-based financing is "not beyond OFAC's reach,""
Treasury's designation framework rests on Executive Order 13902, which the department has expanded to cover Iran's digital-asset sector. Blockchain-intelligence firm TRM Labs identified about $1 billion in IRGC-linked activity tied to earlier sanctioned platforms before broadening its analysis to include new targets.
