TLDR:
- BitBank sanctions target the Iranian exchange after Treasury alleged it facilitated hundreds of millions of dollars in Bitcoin transfers to the IRGC.
- Treasury also designated BitBank developer Pishtaz Simorgh Electronic Trade Company and three associates linked to Babak Zanjani.
- OFAC placed BitBank on the SDN list under Executive Order 13902, which Treasury is using against Irans digital asset sector.
- U.S. persons generally cannot transact with designated parties without authorization, while certain non-U.S. parties may face sanctions exposure.
The U.S. Treasury imposed BitBank sanctions on September 17, targeting an Iranian digital asset exchange and its developer. Treasury said BitBank helped move hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps. The Office of Foreign Assets Control also designated three associates of Iranian financier Babak Zanjani.
Treasury linked the action to Operation Economic Outcast, its broader sanctions campaign against Iranian financial networks. The department said the exchange supported payments connected to sanctioned Iranian entities. The new Iran crypto sanctions also place BitBank and related parties on OFACs Specially Designated Nationals list. OFAC formalizes that listing.
BitBank Sanctions Target Alleged Bitcoin Transfers to IRGC
Treasury described BitBank as an Iranian digital asset exchange controlled by Babak Zanjani. OFAC previously sanctioned Zanjani and entities tied to his business network. Treasury said he has promoted BitBank since at least 2024.
Today‘s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach. If you support the Iranian regime, the Department of the Treasury will sanction you.
Between June and July 2026, Zanjani allegedly used BitBank for Bitcoin transfers. Treasury said the transactions totaled hundreds of millions of dollars. The department said the funds ultimately went to the IRGC.
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Treasury also linked BitBank to payments involving Hormuz Safe Marine Services Authority. OFAC had already designated that entity before the latest action. Since June, Treasury said Hormuz Safe Marine Services Authority used BitBank to transfer payments to Iran.
The BitBank sanctions were issued under Executive Order 13902. Treasury said that authority covers Irans digital asset sector and other parts of its economy. Treasury uses the order against networks it says support sanctions evasion.
Treasury Secretary Scott Bessent said cryptocurrency-based financing does not sit outside OFACs enforcement reach. He also said Treasury would sanction parties supporting the Iranian government. The statement accompanied the September 17 designations.
BitBank sanctions expand a series of Iran crypto sanctions involving digital asset exchanges. Treasury had already targeted other exchanges and facilitators. OFAC also warns that non-U.S. parties may face additional sanctions exposure for certain dealings with designated Iranian exchanges.
OFAC Adds Developer and Zanjani Associates to SDN List
OFAC also sanctioned Pishtaz Simorgh Electronic Trade Company, which Treasury identified as BitBanks software developer. Treasury said the company is a subsidiary of Dot One Value Creation Group. OFAC had previously designated Dot One.
Three individuals were added in the same action. They are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Treasury described all three as executives within Zanjanis Dot One network.
Treasury said Hossein Ali Zaker Hossein participated in sanctions evasion activity tied to oil exports and digital assets. The department also alleged that he brokered digital asset transactions that ultimately reached the IRGC.
Treasury Sec Scott Bessent just SANCTIONED a massive crypto exchange fueling the Iranian regime!
BitBank and its developers got hit hard under Trumps EO 13902. Use crypto to finance terror？ Get shut down.
America First economic strength in action!
Mohammad Mahdi Zaker Hossein serves as a Dot One manager and representative, Treasury said. He is also the chief executive of Pishtaz Simorgh. Seyed Adel Heidari serves as vice chairman of Dot Ones board.
The new BitBank sanctions block property and interests in property held in the United States. They also apply to property controlled by U.S. persons. Entities owned 50% or more by blocked persons are also blocked under OFAC rules.
U.S. persons generally cannot transact with designated parties without authorization or an applicable exemption. Treasury said violations can lead to civil or criminal penalties. Certain non-U.S. persons can also face exposure for sanctions-related conduct.
BitBank sanctions place the exchange on OFACs SDN list. OFAC identifies BitBank as a Tehran-based financial and insurance entity established in 2024. The entry also flags the exchange for secondary sanctions exposure under Iran-related authorities.
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OFAC sanctions rules restrict the provision or receipt of funds, goods, or services involving blocked persons. Treasury said enforcement can generally apply when transactions involve designated entities directly or through controlled companies.
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