US Treasury Sanctions Iranian Crypto Exchange Over Alleged IRGC Payment Network

The US Department of the Treasury announced sanctions Thursday against Iranian crypto exchange BitBank, accusing the platform of processing Bitcoin payments tied to a maritime scheme operating in the Strait of Hormuz. According to the Treasury’s Office of Foreign Assets Control, the exchange was used to transfer funds collected through the Hormuz Safe Marine Services Authority directly to Iran’s Islamic Revolutionary Guard Corps.

Alleged Role in Broader Sanctions Evasion Network

Treasury officials allege that BitBank formed part of a larger financial network linked to Iranian financier Babak Zanjani, which reportedly moved hundreds of millions of dollars in Bitcoin to the IRGC. Officials have previously claimed that Hormuz Safe operates an IRGC-backed insurance scheme, effectively forcing vessels traveling through the strait to purchase costly maritime coverage, including protection against seizure by Iran itself.

Treasury Signals Continued Crackdown on Crypto-Based Evasion

US Treasury Secretary Scott Bessent said the latest sanctions demonstrate that using cryptocurrency to finance the Iranian government will not shield individuals or platforms from enforcement action. Along with BitBank, the sanctions also target its developer, Pishtaz Simorgh Electronic Trade Company, and three individuals associated with Zanjani, all described by Treasury as key parts of Iran’s digital asset sanctions evasion infrastructure.

Separate From Japan’s Licensed Bitbank Exchange

Notably, Iran’s BitBank is unrelated to Japan based bitbank, inc., a licensed exchange founded in 2014 and recently acquired by SBI Holdings. Treasury records indicate the Iranian platform was established in 2024.

Part of a Growing Pattern of Enforcement

This action follows a series of similar sanctions this year, including against exchanges Shelbit, Aban Tether, and Nobitex, Iran’s largest crypto platform. In July, US authorities also froze more than $130 million in USDt linked to Iranian wallets. Despite these mounting restrictions, Iran has reportedly eased certain currency controls in an effort to encourage the return of overseas earnings, including through cryptocurrency channels.