The US Treasury Department sanctioned Iranian cryptocurrency exchange BitBank on September 17, alleging that it helped transfer hundreds of millions of dollars in bitcoin to Iran's Islamic Revolutionary Guard Corps (IRGC) between June and July this year. The United States, the European Union and several other governments have designated the IRGC as a terrorist organization. The action underscores the continued exposure of Iran-linked crypto platforms to US sanctions investigations, as well as possible restrictions on their assets and access to services.
OFAC Adds BitBank and Three Associates to Its Sanctions List
The Treasury's Office of Foreign Assets Control (OFAC) also designated BitBank's software developer, Pishtaz Simorgh Electronic Trade Company. Three individuals linked to Iranian financier Babak Zanjani were named as well: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
The Treasury described BitBank as a “digital asset enterprise of primary concern” controlled by Zanjani, who had previously been sanctioned by OFAC. At the time, US authorities accused him of using a network of affiliated companies to launder money and evade sanctions imposed on Iran.
According to the Treasury, Zanjani used BitBank between June and July to transfer hundreds of millions of dollars in bitcoin to the IRGC. US authorities also said that Hormuz Safe Marine Services Authority had used the exchange since June to move funds to the Iranian regime. The allegations and details of the transactions remain limited to the scope of the US sanctions documents. It is not clear whether BitBank or the other designated parties will respond.
US Treasury Secretary Scott Bessent said the sanctions against Iran's digital-asset infrastructure showed that the use of cryptocurrency to finance the Iranian regime was not beyond OFAC's reach. He warned that individuals and entities supporting the Iranian regime could face Treasury sanctions.
Hormuz Safe Linked to Bitcoin Settlement Platform
Hormuz Safe appears to be the formal entity behind a bitcoin settlement platform connected to Iran. Iranian media first disclosed the platform in May this year, describing it as an insurance or protection service for vessels passing through the Strait of Hormuz.
The platform emerged several months after the start of the US-Iran conflict and was promoted as a protection scheme for shipping in the Strait of Hormuz. Iranian officials said at the time that its target revenue exceeded $10 billion. By linking Hormuz Safe-related entities to alleged fund transfers through BitBank, the Treasury action has placed greater scrutiny on the platform's payment arrangements and use of digital assets.
Public information does not currently specify the amount processed through BitBank by Hormuz Safe, the counterparties involved or the purpose of the funds. It also does not show whether all of the transactions involved entities subject to US sanctions. For crypto exchanges, the designation could affect relationships with overseas service providers, custodians and blockchain infrastructure companies.
US Broadens Sanctions on Iranian Crypto Exchanges
BitBank is not the first Iranian crypto exchange sanctioned by the United States this year. In June, OFAC designated Nobitex, described by the Treasury as Iran's largest crypto exchange, along with Wallex, Bitpin and Ramzinex. The Treasury said Nobitex processed more than half of Iran's digital-asset inflows in 2025 and facilitated transactions involving the IRGC and other sanctioned entities.
In August, OFAC added Shelbit and Aban Tether to its sanctions list. The US government had previously referred to the campaign against Iran's crypto-asset infrastructure as “Economic Fury.” The “Operation Economic Outcast” campaign, launched on August 24, was described as a larger continuation of that effort.
The sanctions now cover not only major exchanges such as Nobitex, but also BitBank's controller, software developer and related individuals. That points to a broader focus on the companies, technology providers and financial networks supporting Iran-linked digital-asset activity. Market participants will be watching for any further OFAC disclosures involving wallet addresses, transaction records or affiliated entities, as well as possible effects on customer assets, withdrawals and cross-border settlement arrangements.