The U.S. Treasury has sanctioned Iranian crypto exchange BitBank on Sept. 17, alleging that a network linked to financier Babak Zanjani used the platform to transfer hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps between June and July.
- OFAC sanctioned BitBank, its developer, and three associates linked to financier Babak Zanjani on Thursday.
- Treasury alleges BitBank transferred hundreds of millions in Bitcoin to Iran’s Islamic Revolutionary Guard Corps.
- Hormuz Safe allegedly used BitBank since June to move maritime payments collected for Iran’s government.
- BitBank and Pishtaz Simorgh were designated under Executive Order 13902 for Iran digital asset activities.
- U.S. persons must block designated property, while certain foreign dealings may create secondary sanctions exposure.
Treasury said the Office of Foreign Assets Control placed BitBank, software developer Pishtaz Simorgh Electronic Trade Company and three Zanjani associates under sanctions as part of Operation Economic Outcast, its current campaign targeting Iranian financial networks and sanctions evasion.
The designations are administrative sanctions actions, not criminal convictions. Treasury’s public announcement does not provide Bitcoin wallet addresses, transaction hashes or a precise total supporting the alleged transfers, leaving the cited “hundreds of millions of dollars” figure attributed to the U.S. government.
BitBank was added to OFAC’s sanctions list
OFAC’s Sept. 17 notice identifies BitBank as an Iran-based financial and insurance business established in 2024. The listing includes the names BitBank and BitBank3, along with bitbank3.com and bitbank.com.
Pishtaz Simorgh Electronic Trade Company was added in the same action. Treasury describes the company as the developer of BitBank’s digital asset software and a subsidiary of Dot One Value Creation Group, another entity previously placed under U.S. sanctions.
The three people designated alongside the companies are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury identifies all three as executives connected with Zanjani’s Dot One business network.
Mohammad Mahdi Zaker Hossein serves as Pishtaz Simorgh’s chief executive, according to Treasury. Seyed Adel Heidari is vice chairman of Dot One’s board, while Treasury alleges Hossein Ali Zaker Hossein has participated in oil exports and digital asset transactions linked to Zanjani’s sanctions-evasion operations.
BitBank itself was designated under Executive Order 13902 for operating in Iran’s digital asset sector. Treasury expanded its use of that authority in August as part of Operation Economic Outcast, allowing OFAC to target companies and individuals involved in Iran’s crypto industry.
Treasury Secretary Scott Bessent said the action showed that “efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach.” His statement accompanied the designation and represents the U.S. administration’s enforcement position.
Treasury alleges Bitcoin moved to the IRGC
Between June and July, Treasury alleges Zanjani used BitBank to transfer hundreds of millions of dollars worth of Bitcoin to the IRGC.
The Sept. 17 release does not identify the wallets involved or break down the transactions by date, amount or counterparty. OFAC’s accompanying SDN entry similarly does not list digital currency addresses for BitBank.
No independent on-chain evidence reviewed for this report confirms the full amount cited by Treasury. The transfer total therefore remains a U.S. government allegation based on information OFAC has not fully disclosed publicly.
Treasury has tied Zanjani to digital asset businesses for months. On Jan. 30, OFAC sanctioned him alongside Zedcex Exchange and Zedxion Exchange, alleging that addresses associated with the exchanges had handled funds connected with IRGC-linked counterparties.
A later July 24 action added four individuals and nine entities linked to his network. Treasury said the businesses covered digital asset trading, transportation, financial services, gold and other activities used to move funds inside Iran and through offshore companies.
BitBank had not been designated during those earlier rounds. Treasury says Zanjani had promoted the exchange publicly since at least 2024 and that several companies within his network listed it as a business partner.
As previous Iran crypto sanctions coverage reported, U.S. authorities have increasingly targeted exchanges and wallet networks that officials say provide Iran with access to international crypto markets despite financial restrictions.
Hormuz Safe allegedly routed payments through BitBank
Treasury tied the latest BitBank designation to another Iran-linked crypto payment operation centered on shipping through the Strait of Hormuz.
Since June, Treasury alleges Hormuz Safe Marine Services Authority has used BitBank to transfer payments it collected to the Iranian government. OFAC had sanctioned Hormuz Safe on July 29.
Hormuz Safe promoted maritime services including insurance, security, traffic management and emergency assistance for vessels crossing the Strait of Hormuz. Treasury said the platform accepted Bitcoin and other digital assets.
U.S. officials described the program as part of an IRGC-linked revenue system. Treasury alleged that some of the risks covered by the maritime insurance arrangement included vessel seizures and other threats associated with Iranian activity in the waterway.
The agency did not publish Bitcoin addresses or transaction hashes when it sanctioned Hormuz Safe in July. Earlier reporting on the Hormuz Safe sanctions noted the absence of public on-chain identifiers and payment totals in OFAC’s initial announcement.
Treasury’s Sept. 17 statement now links those payments to BitBank but still does not provide a transaction-by-transaction trail in its public materials.
The agency says BitBank formed part of the financial infrastructure Zanjani built around the maritime payment system and other sanctioned operations. Treasury has not disclosed how much of the alleged hundreds of millions in Bitcoin came specifically from Hormuz Safe.
U.S. persons must block BitBank-linked property
Following the designation, property and interests in property belonging to BitBank, Pishtaz Simorgh and the three listed individuals must be blocked when located in the U.S. or held by U.S. persons.
OFAC’s 50% rule extends the restrictions to businesses owned directly or indirectly, individually or collectively, 50% or more by blocked parties.
Transactions involving designated people or entities are generally prohibited for U.S. persons unless OFAC issues a license or an exemption applies. Treasury warns that certain foreign institutions and businesses may face sanctions exposure when dealing with blocked Iranian entities.
The Sept. 17 notice labels BitBank and Pishtaz Simorgh as subject to secondary sanctions. The designation therefore extends beyond a simple prohibition on U.S. companies transacting directly with them.
Treasury says civil sanctions violations can be enforced on a strict-liability basis, meaning OFAC can impose penalties without establishing that a party knew it was violating sanctions. Criminal liability involves separate legal standards.
The designations remain subject to OFAC’s administrative removal process. A designated person can petition the agency to be removed from the SDN list by presenting arguments or evidence that the listing no longer has a sufficient basis.
BitBank follows earlier sanctions on Iranian exchanges
The BitBank action extends a series of U.S. sanctions against Iranian crypto platforms during 2026.
In June, Treasury sanctioned Nobitex, Wallex, Bitpin and Ramzinex, accusing the exchanges of helping sanctioned Iranian actors access digital assets. Earlier coverage of the Nobitex action reported that Treasury described Nobitex as Iran’s largest crypto exchange.
OFAC added Shelbit and Aban Tether on Aug. 7. Treasury alleged Shelbit-linked addresses had sent more than $2 million to IRGC-controlled addresses and received more than $1 million from IRGC-linked wallets.
Aban Tether was accused of processing millions of dollars involving previously sanctioned Iranian exchanges. Related coverage of the August designations noted that Shelbit’s former management denied knowingly participating in money laundering, terrorism financing or sanctions evasion.
Operation Economic Outcast began on Aug. 24 and covers crypto, oil sales, shipping, technology, aviation, gold and other financial channels that Treasury says generate or move revenue for Iranian state-linked entities.
As crypto sanctions campaign coverage reported at the time, Treasury said the campaign would use expanded sanctions authority against companies operating in Iran’s digital asset sector, including actors located outside the country.
The Sept. 17 designation formally places BitBank, Pishtaz Simorgh, Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari on OFAC’s SDN list. Treasury has not announced a related criminal indictment or published the Bitcoin addresses underlying the alleged June-to-July transfers.
