The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Tehran-based crypto exchange BitBank. The platform, established in 2024, is accused of transferring hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC) between June and July 2026. The enforcement action, part of ‘Operation Economic Outcast,’ targets entities funneling funds to US-designated terrorist organizations.
The exchange’s Bitcoin flows are directly linked to Middle Eastern maritime traffic. Hormuz Safe Marine Services Authority used BitBank to collect “insurance” fees from commercial vessels traversing the Strait of Hormuz. Levies were set at $1 million to $2 million per ship. Maritime lawyers consider the practice a violation of the right of innocent passage guaranteed under international maritime law.
The Figures Behind the Scenes
BitBank’s ownership trail leads to Babak Zanjani, an Iranian financial figure who has been on OFAC’s sanctions list since January. Zanjani has a criminal track record in his home country: an Iranian court sentenced him to death in 2016 for embezzling National Iranian Oil Company funds. That sentence was commuted in 2024, coinciding with the year BitBank began operations.
US enforcement also targeted the exchange’s technology stack. Pishtaz Simorgh Electronic Trade Company, developer of BitBank’s operating software, was blacklisted. The company is a subsidiary of Dot One Value Creation Group, an entity sanctioned earlier. Three Dot One executives were also swept up in the latest round of sanctions.
Threat of Financial Isolation
The sanctions freeze all BitBank assets under US jurisdiction and prohibit US persons from transacting with the exchange. The heaviest blow, however, lies in secondary sanctions. Crypto exchanges in Dubai or banks in Istanbul found processing BitBank funds risk being completely cut off from the US financial system.
The legal basis for the action rests on Executive Order 13902, which was expanded in August to cover anyone operating in Iran’s digital asset sector, following initial sanctions against Hormuz Safe Marine Services Authority on July 29. US Treasury Secretary Scott Bessent issued a stern warning about the limits of crypto anonymity. “Efforts to fund the Iranian regime using crypto are not beyond the reach of OFAC,” he said.
Reported via CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
