US Sanctions Iran-Linked BitBank for Hormuz Safe BTC Transfers

U.S. authorities on Thursday imposed sanctions on an Iran-linked cryptocurrency exchange called BitBank, its software developer and three associates tied to financier Babak Zanjani. The Treasury Department’s Office of Foreign Assets Control identified the entities as part of a network that moved Bitcoin payments from vessels transiting the Strait of Hormuz to the Islamic Revolutionary Guard Corps via the Hormuz Safe Marine Services Authority.

OFAC stated that, as of June, Hormuz Safe used BitBank to transfer payments it received to the IRGC and that the arrangement formed part of an architecture Zanjani allegedly used to move hundreds of millions of dollars in Bitcoin to the paramilitary force.

The Treasury described Hormuz Safe as linked to an IRGC-backed scheme that required some vessels to purchase maritime insurance for passage through the Strait, including policies that covered the risk of seizures by Iranian authorities.

The designation lists BitBank, Pishtaz Simorgh Electronic Trade Company (the exchange’s developer) and three individuals associated with Zanjani. The action freezes any U.S.-based assets of the designated parties and generally prohibits Americans from engaging in transactions with them.

U.S. Treasury Secretary Scott Bessent characterized the listings as a demonstration that attempts to finance the Iranian regime using cryptocurrencies fall within OFAC’s jurisdiction.

OFAC’s notice indicates BitBank was established in 2024 and specifies that it is a distinct entity from bitbank, inc., a licensed Japan-based exchange founded in 2014 and recently acquired by SBI Holdings. The Treasury’s action applies only to the Iran-linked platform.

The sanctions follow earlier measures by the Treasury targeting Iran’s digital-asset infrastructure. In recent months officials sanctioned other exchanges, including two firms targeted in August and four exchanges named in June, and in July ordered the freezing of more than $130 million in USDt held in wallets linked to Iran.

Reports say Iran’s central bank has eased some foreign currency controls to encourage businesses to repatriate overseas earnings, with cryptocurrency mentioned as a possible route for moving funds home.

The Treasury and OFAC did not provide further operational details beyond the allegations in the designation. BitBank did not immediately respond to requests for comment.