US Sanctions Iran's BitBank Over IRGC Bitcoin Transfers

The U.S. Department of the Treasury imposed sanctions on Iranian cryptocurrency exchange BitBank and its developer, accusing them of laundering hundreds of millions in Bitcoin for the Islamic Revolutionary Guard Corps under Operation Economic Outcast. The action targets digital asset infrastructure used by Tehran to bypass international financial restrictions.

"Today's designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach," Treasury Secretary Scott Bessent said in a statement regarding the designations. "If you support the Iranian regime, the Department of the Treasury will sanction you."

Specific Entities Targeted by OFAC

The Office of Foreign Assets Control targeted several related entities alongside the exchange itself. The developer behind the platform, Pishtaz Simorgh Electronic Trade Company, was added to the blacklist.

Additionally, the Treasury penalized three associates linked to previously sanctioned Iranian financier Babak Zanjani. Those individuals are:

• Hossein Ali Zaker Hossein
• Mohammad Mahdi Zaker Hossein
• Seyed Adel Heidari

Mechanics of the Sanctions Evasion

According to treasury officials, Babak Zanjani utilized BitBank between June and July to move hundreds of millions of dollars' worth of Bitcoin directly to the Islamic Revolutionary Guard Corps. Investigators found the platform also routed payments for the Hormuz Safe Marine Services Authority.

The designations were executed under Executive Order 13902. This order grants the executive branch broad authority to target specific sectors of the Iranian economy, including finance, manufacturing, and mining, as well as any entities assisting designated individuals.

Background on Operation Economic Outcast

The penalties form part of Operation Economic Outcast, a targeted campaign launched by Treasury Secretary Scott Bessent on August 24. The initiative represents an effort by Washington to cut off foreign and domestic financial channels supporting the Iranian regime.

By focusing on digital asset infrastructure, the Treasury aims to close loopholes where decentralized tokens can be leveraged to obscure cross-border capital flows. The inclusion of commercial crypto exchanges highlights regulatory scrutiny over virtual asset service providers operating in sanctioned jurisdictions.