US sanctions Iran’s BitBank, saying it processes ‘Hormuz Safe’ Bitcoin payments

The U.S. Treasury announced sanctions on Iranian cryptocurrency exchange BitBank and related parties, alleging the platform processed Bitcoin payments tied to vessels transiting the Strait of Hormuz. OFAC said those payments were received by the Hormuz Safe Marine Services Authority and then moved to the Islamic Revolutionary Guard Corps, and it identified the exchange and its developer, Pishtaz Simorgh Electronic Trade Company, among the designated targets. Treasury officials characterized the designated entities as components of a broader architecture used by Iranian financier Babak Zanjani to transfer substantial Bitcoin sums—what the agency described as hundreds of millions of dollars—to the IRGC. The designation names three associates of Zanjani alongside BitBank and its developer. The action is part of a series of measures aimed at curbing Iran’s use of digital assets to evade sanctions. In recent months the Treasury sanctioned other Iran-linked crypto platforms, including Shelbit and Aban Tether in August and several exchanges in June (among them the country’s largest, Nobitex). In July the U.S. also froze more than $130 million in USDT tied to Iranian wallets, according to Treasury announcements. Treasury stressed that the move makes clear attempts to finance the Iranian regime through cryptocurrencies are within its enforcement scope. Cointelegraph sought comment from BitBank. The Treasury’s designation also notes BitBank was established in 2024 and clarifies it is a separate entity from Japan’s bitbank, inc., which was acquired by SBI Holdings in June. Reporting referenced by the Financial Times indicates Iran has taken steps—such as easing foreign currency controls—to encourage repatriation of overseas earnings, including via crypto, amid tighter sanctions.