U.S. Sanctions Iranian Crypto Exchange Over Alleged IRGC Ties

The Office of Foreign Assets Control (OFAC) designated BitBank, its software developer Pishtaz Simorgh Electronic Trade Company, and three associates of financier Babak Zanjani as part of Operation Economic Outcast. U.S. officials allege that between June and July, the exchange served as a critical conduit for moving digital assets tied to the IRGC, including payments routed through the Hormuz Safe maritime service. Despite the severity of the allegations, Treasury has not released specific transaction hashes or wallet addresses to substantiate the total transfer figures.

Alongside the exchange, authorities sanctioned three individuals: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Each is reportedly linked to Zanjani’s Dot One business network, which the Treasury describes as a vehicle for sanctions evasion. While these designations are administrative rather than criminal, they effectively cut the entities off from the U.S. financial system and expose foreign institutions to secondary sanctions if they continue to process transactions for the listed parties. This move follows a series of similar actions throughout the year against Iranian platforms like Nobitex and Wallex, signaling a broader strategy to isolate the Iranian regime from international digital asset markets.