The U.S. Department of the Treasury has sanctioned BitBank, an Iranian cryptocurrency exchange, designating it as part of Operation Economic Outcast, the Trump Administration's economic campaign against Iran and entities supporting the Islamic Republic.
Treasury Secretary Scott Bessent stated in a Thursday announcement that the action underscores the department's capacity to reach efforts financing the Iranian regime through cryptocurrencies. "If you support the Iranian regime, the Department of the Treasury will sanction you," Bessent said.
The sanctions target Iranian financier Babak Zanjani, software developer Pishtaz Simorgh Electronic Trade Company, and three of Zanjani's associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. According to the Treasury, the Iranian Hormuz Safe Marine Services Authority has used BitBank since June to transfer bitcoin to the Iranian regime.
The Treasury said Thursday's action aims to disrupt "the architecture Zanjani built to launder funds" and emphasized its commitment to targeting both the Iranian digital asset ecosystem and international entities facilitating its use.
Iran has increasingly relied on cryptocurrencies to navigate decades of U.S. sanctions. Earlier this year, the country launched a bitcoin-backed insurance service for its shipping companies. In July, the Treasury's Office of Foreign Assets Control reported that Iran had been accepting bitcoin payments from ships transiting the Strait of Hormuz as a means to bypass sanctions.
The U.S. also froze cryptocurrency linked to the Iranian regime in July, predominantly holdings of Tether's stablecoin USDT. Unlike stablecoins, which can be frozen by their issuing company, bitcoin operates as a decentralized asset without a single issuer capable of freezing transactions.
