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US sanctions Iran’s BitBank, saying it processes ‘Hormuz Safe’ Bitcoin payments
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The US Treasury on Thursday sanctioned Iranian cryptocurrency exchange BitBank, accusing it of processing Bitcoin payments tied to a maritime scheme in the Strait of Hormuz. The Treasury's Office of Foreign Assets Control said BitBank handled payments received by Hormuz Safe Marine Services Authority and helped transfer them to the Islamic Revolutionary Guard Corps. The action marks another step in Washington's campaign to cut off Iran's access to digital asset infrastructure.
According to the Treasury, Hormuz Safe is part of an IRGC-backed operation that forces vessels to purchase maritime insurance for passage through the Strait, including coverage against seizure by Iran itself. The agency alleged that Iranian financier Babak Zanjani used BitBank as part of an architecture that moved hundreds of millions of dollars in Bitcoin to the IRGC. The exchange was established in 2024, the Treasury noted.
The designations cover BitBank, its developer Pishtaz Simorgh Electronic Trade Company, and three associates of Zanjani. The Treasury described these entities as key components of Iran's digital assets-based sanctions evasion infrastructure. The action follows earlier sanctions on Iranian exchanges Shelbit and Aban Tether in August, and Nobitex in June.
In July, the US government ordered the freezing of more than $130 million in USDt held in wallets linked to Iran. Treasury Secretary Scott Bessent said the latest designations make clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach. The sanctions are part of broader efforts to isolate Iran from the international financial system.
Cointelegraph reached out to BitBank for comment but did not receive a response. Iran has reportedly sought to ease the impact of tightening restrictions. Earlier this month, the Financial Times reported that Iran's central bank relaxed foreign currency controls to encourage businesses to bring overseas earnings home, including through cryptocurrency.
The sanctions highlight growing US scrutiny of crypto exchanges that may facilitate sanctions evasion. Iran's continued adaptation suggests an ongoing cat-and-mouse dynamic between Tehran and Washington. Further designations may follow as US authorities track digital asset flows linked to the IRGC.
