Key Points
- The U.S. Treasury has sanctioned BitBank, an Iranian exchange overseen by financier Babak Zanjani.
- According to the Treasury, Zanjani facilitated the transfer of hundreds of millions in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC) during June and July.
- Since June, the Hormuz Safe Marine Services Authority has been using BitBank to process payments destined for the Iranian government.
The U.S. Treasury has imposed sanctions on BitBank, identifying it as the Iranian exchange responsible for processing Bitcoin payments made by shipping companies for safe transit through the Strait of Hormuz.
As reported by the Office of Foreign Assets Control (OFAC), the Hormuz Safe Marine Services Authority has utilized BitBank to relay collected payments to the Iranian regime since June. This authority was previously identified by the Treasury in July as the organization charging vessels in Bitcoin for transit rights.
As part of Operation Economic Outcast, the Treasury's Office of Foreign Assets Control (OFAC) has designated significant elements of the Iranian regime's infrastructure aimed at evading sanctions tied to digital assets. This includes BitBank, a critical digital asset…
— Treasury Department (@USTreasury) September 17, 2026
Between June and July, the Treasury claims that BitBank facilitated the transfer of "hundreds of millions of dollars' worth of Bitcoin" to the IRGC.
BitBank is under the control of Babak Zanjani, an Iranian financier previously designated by OFAC in January. Zanjani was sentenced to death in Iran in 2016 for embezzling from the National Iranian Oil Company but had his sentence commuted in 2024 and has since emerged supporting ventures linked to the regime. The Treasury noted that he has been promoting BitBank on his social media since at least 2024.
Additional Sanctions
The sanctions also extend to Pishtaz Simorgh Electronic Trade Company, the developer of BitBank's software and a subsidiary of the already designated Dot One Value Creation Group. Furthermore, three executives from Dot One—Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari—were also sanctioned.
Treasury officials describe the first executive as being heavily involved in Zanjani's sanctions evasion efforts, including oil exports, and note that he has facilitated digital asset transactions linked to the IRGC.
All five individuals were sanctioned under Executive Order 13902, which was extended in August to include anyone engaged in Iran's digital asset sector. This authority has been used by the Treasury to navigate through the network, including crypto exchanges previously designated for laundering Iranian funds.
“Efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach,” stated Treasury Secretary Scott Bessent. “If you support the Iranian regime, the Department of the Treasury will sanction you.”
Myriad: When will the U.S. blockade of Iran come to an end? Share your prediction.The sanctions fall under Operation Economic Outcast, a campaign launched by Bessent on August 24, intended to sever Iran's remaining economic connections with the assistance of the EU, UK, and Gulf partners.
Assets belonging to the five sanctioned individuals are blocked, as well as any entities they own at least 50% of, and non-U.S. companies engaging with them may face secondary sanctions.
Market analysts do not anticipate an easing of pressure in the near future. On Myriad, a prediction platform created by Decrypt's parent company Dastan, the likelihood of the U.S. announcing an end to its naval blockade of Iranian shipping by September 30 has dropped to 10%, down 30 points, while even a December 31 deadline is assessed at only a 60% chance.