Key Takeaways
- Iranian cryptocurrency platform BitBank has been sanctioned by the US Treasury for purportedly facilitating Bitcoin transfers worth hundreds of millions to the IRGC
- The exchange processed cryptocurrency payments through the Hormuz Safe initiative from vessels navigating the Strait of Hormuz
- OFAC also designated Iranian financial operator Babak Zanjani along with three connected individuals
- Pishtaz Simorgh Electronic Trade Company, the software development firm behind BitBank, was added to the sanctions list
- The designations form part of “Operation Economic Outcast,” a comprehensive US initiative targeting Iran’s cryptocurrency networks
On Thursday, the US Treasury Department imposed sanctions on Iranian cryptocurrency platform BitBank, alleging the exchange facilitated the transfer of hundreds of millions of dollars worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps.
🇺🇸 JUST IN: The US Treasury has sanctioned Iranian crypto exchange BitBank for transferring hundreds of MILLIONS in Bitcoin to the IRGC.
BitBank processed payments for Iran’s Hormuz Safe Marine Services Authority, the scheme behind the tanker crisis in the Strait of Hormuz.
The… pic.twitter.com/S1j5ml4Q5R
— Coin Bureau (@coinbureau) September 17, 2026
The Office of Foreign Assets Control identified BitBank as a central component within Iran’s digital currency sanctions circumvention apparatus. The designation also encompassed Pishtaz Simorgh Electronic Trade Company, BitBank’s software development firm, plus three individuals associated with Iranian businessman Babak Zanjani.
OFAC had previously sanctioned Zanjani for allegedly operating a financial network designed to launder funds and assist Iran in circumventing global sanctions.
The Mechanics Behind the Alleged Bitcoin Scheme
Throughout June and July, Zanjani allegedly utilized BitBank to transfer Bitcoin valued at hundreds of millions of dollars to the IRGC. The Hormuz Safe Marine Services Authority, an entity connected to the IRGC, began processing these transactions through BitBank in June.
Hormuz Safe administers a program requiring vessels traversing the Strait of Hormuz to purchase maritime coverage, including insurance against Iranian seizure. Bitcoin served as the payment method for these transactions.
According to reports from Iranian media in May, Iran projected revenues exceeding $10 billion from the initiative, which emerged several months following heightened US-Iran diplomatic tensions.
Treasury Secretary Scott Bessent delivered an unambiguous message: “If you support the Iranian regime, the Department of the Treasury will sanction you.”
The IRGC has been classified as a terrorist organization by the United States, European Union, and numerous other nations.
Component of Broader Enforcement Initiative
The sanctions announced Thursday represent more than a standalone action. They constitute part of “Operation Economic Outcast,” an enforcement campaign initiated on August 24 that expands upon a predecessor initiative dubbed “Economic Fury.”
In June, OFAC designated Nobitex, Iran’s predominant cryptocurrency platform, together with Wallex, Bitpin, and Ramzinex. According to Treasury officials, Nobitex handled over fifty percent of Iran’s digital asset inflows during 2025.
Two additional platforms faced sanctions in August: Shelbit and Aban Tether, both accused of enabling the Iranian government to bypass international restrictions.
In July, US authorities mandated the seizure of over $130 million in USDT stored in digital wallets linked to Iranian entities.
Treasury documentation indicates BitBank was founded in 2024. The Iranian platform is a distinct entity from bitbank, inc., a regulated Japanese cryptocurrency exchange established in 2014 and later purchased by SBI Holdings in June.
OFAC has not yet issued public statements in response to inquiries regarding additional details about the latest designations.
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