U.S. Treasury Imposes Sanctions on Iranian Crypto Exchange Linked to Bitcoin Payments for Hormuz Passage

U.S. Treasury Targets Iranian Crypto Exchange

The U.S. Treasury Department has sanctioned BitBank, an Iranian cryptocurrency exchange linked to financier Babak Zanjani, for its role in facilitating Bitcoin payments for safe passage through the Strait of Hormuz. This action is part of a broader initiative to combat Iran's evasion of international sanctions.

BitBank has been identified as a key player in processing payments since June for the Hormuz Safe Marine Services Authority, which charges shipping companies in Bitcoin for transit rights. The Treasury has accused BitBank of enabling the transfer of hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC) during the months of June and July.

“Efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach,” stated Treasury Secretary Scott Bessent.

Babak Zanjani, who controls BitBank, has a controversial background, having been sentenced to death in Iran for embezzlement, although his sentence was commuted in 2024. He has actively promoted BitBank on social media since then.

Additional Sanctions Imposed

The Treasury's sanctions also extend to Pishtaz Simorgh Electronic Trade Company, the software developer for BitBank, and three executives from Dot One Value Creation Group, which is affiliated with Zanjani. These sanctions are enforced under Executive Order 13902, aimed at those involved in Iran's digital asset sector.

All assets of the sanctioned individuals are blocked, and any entities they control that are at least 50% owned are also affected. Companies that engage with these individuals may face secondary sanctions. Market analysts predict that the U.S. will maintain its pressure on Iran, with a low probability of easing restrictions in the near future.