The U.S. Treasury has placed Iranian digital asset exchange BitBank under sanctions through the Office of Foreign Assets Control, targeting what Treasury describes as a sanctions-evasion network tied to Iranian financier Babak Zanjani.
OFAC also sanctioned BitBank developer Pishtaz Simorgh Electronic Trade Company and several individuals connected to Zanjani's business network. According to Treasury allegations, Zanjani used BitBank between June and July to facilitate the movement of hundreds of millions of dollars' worth of Bitcoin to Iran's Islamic Revolutionary Guard Corps.
Broader Campaign Against Iran-Linked Infrastructure
The action represents part of a wider Treasury campaign targeting Iran-linked financial infrastructure. In previous enforcement rounds, OFAC has sanctioned banks, exchanges, facilitators, and digital asset businesses alleged to help sanctioned actors move money outside conventional banking channels.
The BitBank designation is notable because Treasury is sanctioning an operating digital asset business and the software company behind it, rather than simply tracing individual wallets or identifying specific addresses. This suggests U.S. enforcement increasingly treats crypto infrastructure similarly to banks, payment processors, and front companies when officials believe the underlying business circumvents sanctions.
Compliance Implications for Crypto Industry
Once OFAC designates an entity, U.S. persons are generally prohibited from dealing with it. Compliance systems worldwide begin screening connected entities, addresses, and counterparties, which can create operational challenges across a broader network.
The action underscores that Treasury expects crypto businesses to treat digital asset sanctions risk as part of standard financial compliance. While blockchain's public ledger makes asset movements traceable in ways traditional cash does not, traceability alone does not eliminate the need for sanctions controls.
