U.S. Sanctions Iranian Bitcoin Exchange Over Strait of Hormuz Toll Scheme

Iranian Bitcoin exchange — The U.S. Treasury Department has sanctioned Tehran-based cryptocurrency exchange BitBank, alleging it processed hundreds of millions of dollars in bitcoin for Iran’s Islamic Revolutionary Guard Corps and facilitated payments from a maritime toll scheme in the Strait of Hormuz.

According to the Treasury’s announcement, BitBank moved funds for the Revolutionary Guards and handled transaction fees collected by the Hormuz Safe Marine Services Authority. That entity has reportedly charged commercial tankers between $1 million and $2 million for “safe passage” through the strategic waterway, a critical global oil chokepoint.

The sanctions freeze any of BitBank’s property under U.S. jurisdiction and threaten foreign financial institutions that process its transactions with potential exclusion from the U.S. financial system. The Treasury also sanctioned BitBank’s software developer, Amir Hossein Bahremani.

The action highlights the continued use of cryptocurrency by sanctioned nations to facilitate international transactions. The Treasury did not identify specific cryptocurrency wallet addresses associated with the exchange in its announcement.