The U.S. Treasury imposed sanctions on BitBank, an Iranian digital asset exchange, on September 17, targeting what it described as a platform used to move hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps. The Office of Foreign Assets Control placed BitBank and associated parties on its Specially Designated Nationals list under Executive Order 13902.
Treasury identified BitBank as controlled by Babak Zanjani, who was previously sanctioned by OFAC. The department said Zanjani has promoted BitBank since at least 2024. Between June and July 2026, Treasury alleged Zanjani used the exchange for Bitcoin transfers totaling hundreds of millions of dollars ultimately destined for the IRGC.
The sanctions also targeted Pishtaz Simorgh Electronic Trade Company, identified as BitBank's software developer and a subsidiary of Dot One Value Creation Group, which OFAC had previously designated. Three individuals were added to the sanctions list: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari, all described as executives within Zanjani's network.
Treasury linked the action to Operation Economic Outcast, its broader sanctions campaign against Iranian financial networks. The department said BitBank supported payments connected to sanctioned Iranian entities and was used by Hormuz Safe Marine Services Authority, previously designated by OFAC, to transfer payments within Iran since June.
Under the sanctions, U.S. persons are generally prohibited from transacting with designated parties without authorization or an applicable exemption. Violations can result in civil or criminal penalties. The sanctions block property and interests in property held in the United States and apply to property controlled by U.S. persons. Entities owned 50 percent or more by blocked persons are also blocked under OFAC rules.
Treasury Secretary Scott Bessent stated that cryptocurrency-based financing does not sit outside OFAC's enforcement reach and that the department would sanction parties supporting the Iranian government. OFAC also warned that certain non-U.S. parties may face additional sanctions exposure for dealings with designated Iranian exchanges.
