The US Treasury Department's Office of Foreign Assets Control (OFAC) on September 17 sanctioned BitBank, an Iranian cryptocurrency exchange, along with Pishtaz Simorgh Electronic Trade Company, which developed the exchange's software. The action targets what Treasury described as part of Iran's digital-asset sanctions-evasion infrastructure.
According to OFAC, sanctioned Iranian financier Babak Zanjani used BitBank between June and July to facilitate hundreds of millions of dollars in Bitcoin transfers to the Islamic Revolutionary Guard Corps (IRGC). Additionally, the Hormuz Safe Marine Services Authority, previously sanctioned over an alleged maritime-payment scheme, used the exchange since June to move receipts to the Iranian government.
The designations also included three individuals tied to Zanjani's corporate network: Mohammad Mahdi Zaker Hossein, chief executive of Pishtaz Simorgh; Seyed Adel Heidari, vice chairman of Dot One's board; and Hossein Ali Zaker Hossein. Treasury alleged the latter participated in sanctions-evasion activity including Iranian oil exports and digital-asset transactions that reached the IRGC.
Treasury Secretary Scott Bessent stated the move demonstrates that crypto-based financing is "not beyond OFAC's reach," warning that parties supporting the Iranian government could become sanctions targets.
BitBank joins several other Iranian crypto platforms sanctioned this year. OFAC designated Nobitex, Wallex, Bitpin and Ramzinex in June, followed by Shelbit and Aban Tether in August. These actions are part of Operation Economic Outcast, a campaign Treasury launched August 24 to cut Iran off from financial channels used to move oil revenue, evade sanctions, and fund the IRGC.
The investigation connecting BitBank to broader sanctions-evasion networks began with blockchain-intelligence firm TRM Labs' analysis of exchanges Zedcex and Zedxion, sanctioned with Zanjani in January. TRM identified approximately $1 billion in IRGC-linked activity on those platforms before expanding its investigation to include companies, payment systems and digital infrastructure surrounding them, eventually mapping an ecosystem that included Dot One, ZedPay, transportation companies, and BitBank.
