The U.S. Department of the Treasury has sanctioned the Iranian cryptocurrency exchange BitBank, accusing it of routing hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC). Controlled by twice-sanctioned financier Babak Zanjani, BitBank allegedly processed forced maritime insurance payments collected from ships transiting the Strait of Hormuz by the IRGC-backed Hormuz Safe Marine Services Authority. The action, part of the Treasury's broader "Operation Economic Outcast" campaign, also targets BitBank's software developer and three of Zanjani's close associates.
BitBank IRGC bitcoin transfers
- ▪The U.S. Department of the Treasury's Office of Foreign Assets Control designated BitBank's software developer, Pishtaz Simorgh Electronic Trade Company, as part of the Treasury's September 17, 2026, sanctions action against Iranian crypto exchange BitBank
- ▪The U.S. Department of the Treasury stated that Iranian financier Babak Zanjani used BitBank between June and July 2026 to transfer hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps
- ▪The U.S. Department of the Treasury sanctioned the Iranian cryptocurrency exchange BitBank on September 17, 2026, for allegedly routing hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps
Babak Zanjani sanctions evasion
- ▪Iranian financier Babak Zanjani, who was sentenced to death for embezzlement in 2016 before his sentence was commuted in 2024, re-emerged in 2025 as a backer of Iranian government economic projects
- ▪The U.S. Department of the Treasury sanctioned three close associates of Babak Zanjani, identified as Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari, on September 17, 2026
- ▪The U.S. Department of the Treasury previously sanctioned Babak Zanjani and his digital asset projects, Zedcex Exchange Limited and Zedxion Exchange Limited, in January 2026 for laundering money for the Islamic Revolutionary Guard Corps
Hormuz Safe maritime payments
- ▪The U.S. Department of the Treasury accused BitBank of processing Bitcoin payments received by the Hormuz Safe Marine Services Authority from ships transiting the Strait of Hormuz
- ▪The Hormuz Safe Marine Services Authority is an Islamic Revolutionary Guard Corps-backed scheme that forces transiting vessels to purchase maritime insurance, including coverage against seizures by Iran itself
- ▪The U.S. Department of the Treasury alleged that the Hormuz Safe Marine Services Authority has used BitBank since June 2026 to transfer maritime insurance payments to the Islamic Revolutionary Guard Corps
Operation Economic Outcast
- ▪Operation Economic Outcast has identified nearly 60 entities, individuals, and vessels linked to Iran, and issued five specific orders under Executive Order 13902 targeting digital assets, technology, gold, aviation, and shipping
- ▪According to Chainalysis, a determination under Executive Order 13902, issued as part of the Treasury's Operation Economic Outcast campaign, allows the U.S. Office of Foreign Assets Control to sanction foreign individuals operating in Iran's digital-asset sector without proving a connection to terror or proliferation
- ▪The September 17, 2026, sanctions against BitBank were executed under Operation Economic Outcast, a U.S. Treasury campaign launched on August 24, 2026, to isolate Iran's financial and logistical networks
Iranian crypto exchange sanctions
- ▪The U.S. Department of the Treasury sanctioned four Iranian cryptocurrency exchanges, including the country's largest exchange Nobitex, alongside Wallex, Bitpin, and Ramzinex, in June 2026
- ▪The U.S. government ordered the freezing of more than $130 million in USDt stablecoins held in cryptocurrency wallets linked to Iran in July 2026
- ▪The U.S. Department of the Treasury previously sanctioned Iranian cryptocurrency exchanges Shelbit and Aban Tether on August 7, 2026, for assisting the Iranian regime in sanctions evasion
Debatable claims
- ▪US sanctions on centralized crypto exchanges fail to stop illicit state finance
- ▪The US should not sanction software developers who write code for cryptocurrency platforms
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