US Treasury Sanctions Iranian Crypto Exchange Bitbank to Block Sanctions-Evasion Funds

The US Department of the Treasury has added Iran’s cryptocurrency exchange Bitbank to its sanctions list.

According to Bitcoin Magazine, the move aims to disrupt Iran’s use of Bitcoin to circumvent economic sanctions by targeting related exchanges and funding networks. The action is part of former President Trump’s economic pressure campaign against Iran known as Operation Economic Outcast, with the Treasury designating Bitbank as a digital asset infrastructure supporting Iran’s Islamic Republic and its allies.

The sanctions also target Iranian financier Babak Jazani and his software company PishTaz Simorgh Electronic Trade Company, along with three associates: Hussein Ali Zakher Hussein, Mohammad Mahdi Zakher Hussein, and Sayed Adel Heidari. The Treasury stated the measures specifically aim to dismantle Jazani’s money laundering structure.

The key focus is Bitbank’s role as a conduit for moving funds. The Treasury noted that Hormuz Safe Marine Services had been using Bitbank since June to transfer Bitcoin to Iran’s regime, with this sanction targeting both the transaction flow and its supporting infrastructure.

US Treasury Secretary Scott Bessent emphasized that designating Iran’s digital asset infrastructure clarifies that attempts to fund the regime through cryptocurrencies are not beyond the reach of the Office of Foreign Assets Control (OFAC). He warned that supporting Iran’s regime would lead to sanctions.

The US has observed increased Iranian use of cryptocurrency this year, particularly as a means to bypass long-standing economic sanctions. The Treasury noted Iran has been actively leveraging Bitcoin and other digital assets for this purpose.

This follows earlier actions, including the freezing of crypto assets linked to Iran in July, primarily Tether stablecoins. Unlike stablecoins, which can be frozen by issuers, Bitcoin’s decentralized nature makes direct control difficult, prompting the Treasury to target both transaction routes and intermediary infrastructure.

OFAC previously reported in July that Iran had been using Bitcoin payments from vessels passing through the Strait of Hormuz to evade sanctions, with the payment system developed by Iran’s Ministry of Economy. Earlier this year, Iran also launched a Bitcoin-based insurance service for its state-owned shipping companies, prompting the Treasury to view this latest sanction as part of an ongoing series targeting Iran’s broader digital asset ecosystem.