U.S. sanctions Tehran’s BitBank over Bitcoin transfers and Hormuz payments
The U.S. Treasury sanctioned Tehran-based crypto exchange BitBank on Sept. 17, accusing it of moving hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps. Treasury also said BitBank processed payments linked to ships seeking passage through the Strait of Hormuz.
The agency said BitBank is controlled by Iranian financier Babak Zanjani and has operated since at least 2024. Between June and July, Treasury alleges, Zanjani used the exchange to facilitate large Bitcoin transfers to the IRGC. Since June, the Hormuz Safe Marine Services Authority also used BitBank to transfer payments it collected from vessels. Treasury previously said the maritime scheme accepted digital assets as part of efforts to bypass sanctions.
The sanctions also target BitBank’s software developer and three Zanjani associates. U.S. authorities said designated entities face blocked property and restrictions on transactions involving U.S. persons, while foreign institutions facilitating sanctioned Iranian activity could face additional sanctions.
Why it matters
The action highlights growing U.S. scrutiny of crypto infrastructure used in Iran's sanctions-evasion networks. It could increase compliance risks for exchanges and financial firms handling Iranian digital-asset transactions.
