US Treasury Sanctions Iranian Crypto Exchange BitBank Over Bitcoin Transfers

sanctions Iranian crypto exchange — The U.S. Department of the Treasury has sanctioned Iranian cryptocurrency exchange BitBank for allegedly facilitating Bitcoin transfers to the Islamic Revolutionary Guard Corps (IRGC).

The sanctions, announced Thursday, are part of Operation Economic Outcast, a broader campaign against Iran’s economy. Treasury Secretary Scott Bessent stated the action demonstrates that efforts to finance the Iranian regime using cryptocurrencies “are not beyond OFAC’s reach.” The sanctions also target designated Iranian financier Babak Zanjani, his software development company Pishtaz Simorgh Electronic Trade Company, and three of his associates.

The Treasury alleges that since June, the Iranian Hormuz Safe Marine Services Authority has used BitBank to move Bitcoin to the regime. The action aims to dismantle the “architecture Zanjani built to launder funds.” The Treasury warned it would continue targeting not only Iran’s digital asset ecosystem but also international entities that facilitate it.

This follows previous U.S. actions, including freezing crypto assets linked to Iran in July, which were mostly in the form of Tether’s USDT stablecoin. The Treasury noted that while stablecoins can be frozen by their issuer, Bitcoin’s decentralized nature makes it a tool for bypassing sanctions.