US Treasury Sanctions BitBank Over Alleged IRGC Funding Links

The US Department of the Treasury imposed sanctions on cryptocurrency exchange BitBank on Thursday, alleging the platform facilitated the movement of hundreds of millions of dollars in Bitcoin (BTC) to Iran's Islamic Revolutionary Guard Corps (IRGC).

OFAC designated BitBank's software developer and three associates of Babak Zanjani, an Iranian financier already on US sanctions lists. According to Treasury, Zanjani has promoted BitBank services via social media since 2024 and several entities on the sanctions list have identified this exchange as a partner.

OFAC states that Zanjani sent hundreds of millions in Bitcoin through BitBank to IRGC between June and July. Separate entity Hormuz Safe Marine Services Authority also used the exchange for payments to Iran's government from June onward.

Pishtaz Simorgh Electronic Trade Company, which developed BitBank's digital asset software, was also sanctioned. The company is a subsidiary of Dot One Value Creation Group, previously sanctioned by OFAC. Three executives from Dot One were added to sanctions lists as well, including Hossein Ali Zaker Hossein who allegedly facilitated crypto transactions connecting to IRGC.

US Treasury Secretary Scott Bessent stated this action serves as a warning to all providing funds to Tehran. The latest move expands US enforcement against Iran-related activities, following previous sanctions on exchanges Shelbit and Aban Tether in August, and earlier crackdowns on cryptocurrency-based toll schemes for Hormuz Strait.

The Treasury announced last month that the entire Iranian digital asset sector could face sanctions. This campaign extends beyond cryptocurrencies; on September 14, the department sanctioned Russia's VTB Bank for having special relationships with Iran.