U.S. Treasury Targets Iranian Crypto Exchange BitBank Over IRGC Bitcoin Transfers

Key Points

• Iranian crypto exchange BitBank has been designated by the U.S. Treasury for allegedly facilitating Bitcoin transfers worth hundreds of millions to Iran’s Revolutionary Guard
• The exchange processed cryptocurrency payments from vessels traveling through the Strait of Hormuz via the Hormuz Safe system
• OFAC also sanctioned Iranian financier Babak Zanjani along with three of his business partners
• Pishtaz Simorgh Electronic Trade Company, the firm that developed BitBank’s platform, was added to the sanctions list
• The designations form part of “Operation Economic Outcast,” Washington’s expanded initiative against Iranian cryptocurrency networks

On Thursday, the U.S. Treasury Department designated Iranian cryptocurrency exchange BitBank, alleging the platform facilitated the transfer of hundreds of millions of dollars worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps.

The Treasury’s Office of Foreign Assets Control identified BitBank as a central component in Iran’s digital currency-based sanctions circumvention infrastructure. The designation extended to Pishtaz Simorgh Electronic Trade Company, which developed BitBank’s software, as well as three business partners connected to Iranian businessman Babak Zanjani.

Zanjani had previously been placed on OFAC’s sanctions list for operating a network accused of money laundering activities and assisting Iran in circumventing international economic restrictions.

The Mechanics Behind the Alleged Bitcoin Operations

During the months of June and July, Zanjani allegedly leveraged BitBank’s infrastructure to channel hundreds of millions of dollars in Bitcoin directly to the IRGC. The Hormuz Safe Marine Services Authority, an entity with connections to the IRGC, began utilizing BitBank in June to facilitate these cryptocurrency transactions.

Hormuz Safe administers a controversial program requiring vessels navigating through the Strait of Hormuz to purchase maritime insurance coverage, which includes protection from potential Iranian seizure. These insurance payments are settled exclusively in Bitcoin.

According to reports from Iranian media outlets in May, Iran aimed to generate over $10 billion in revenue through this platform, which emerged shortly after heightened tensions between the United States and Iran.

Treasury Secretary Scott Bessent delivered an unambiguous message: “If you support the Iranian regime, the Department of the Treasury will sanction you.”

The IRGC has been classified as a terrorist organization by the United States, the European Union, and multiple other international governments.

Expanding U.S. Enforcement Campaign

The sanctions announced Thursday represent one component of a broader enforcement strategy. These measures fall within “Operation Economic Outcast,” initiated on August 24 as an expansion of the prior “Economic Fury” initiative.

OFAC previously sanctioned Nobitex, Iran’s most prominent crypto exchange, in June, along with Wallex, Bitpin, and Ramzinex. According to Treasury officials, Nobitex handled over fifty percent of Iran’s incoming digital asset transactions in 2025.

Two additional exchanges, Shelbit and Aban Tether, faced sanctions in August, both accused of enabling the Iranian government to bypass international sanctions frameworks.

In July, U.S. authorities mandated the freezing of approximately $130 million in USDT contained within digital wallets associated with Iranian entities.

Treasury documentation indicates BitBank was founded in 2024. The company operates independently from bitbank, inc., a regulated Japanese cryptocurrency exchange established in 2014 that was purchased by SBI Holdings in June.

OFAC has not yet issued public statements in response to inquiries seeking additional information regarding these latest designations.

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