BitBank Faces U.S. Sanctions Over Alleged Bitcoin Transfers to IRGC

Iranian cryptocurrency exchange BitBank has been sanctioned by the U.S. over allegations of transferring hundreds of millions of dollars worth of Bitcoin to Iran's Islamic Revolutionary Guard Corps (IRGC). The company is also accused of handling funds related to tolls collected from ships passing through the Strait of Hormuz, according to a U.S. Treasury Department announcement.

The Office of Foreign Assets Control (OFAC) announced on July 17 that it had sanctioned BitBank, software developer PishTaz Simorgh Electronic Trade Company, and three associates of Iranian financier Babak Jangazi. The Treasury stated that Jangazi used BitBank to transfer hundreds of millions in Bitcoin to the IRGC between June and July.

OFAC also revealed that since June, BitBank has been used to move toll payments collected by Hormuz Safe Marine Services to the Iranian regime. Coindesk reported that these tolls amount to $1-2 million per vessel (approximately 138.1 million to 276.2 million won).