The US Treasury has imposed sanctions on Iranian crypto exchange Bitbank, its software developer Pishtaz Simorgh Electronic Trade Company, and three associates linked to the network of Iranian businessman Babak Zanjani. The move was made through the Office of Foreign Assets Control, or OFAC, and adds a crypto platform and related parties to Washington’s existing sanctions pressure on Iran.
Treasury alleges that Zanjani used Bitbank in June and July to move hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps, or IRGC. The action broadens US enforcement aimed at Iran’s digital asset infrastructure and warns that platforms tied to Zanjani or IRGC-linked networks can face blocking measures.
What Treasury designated
According to the Treasury announcement summarized in the source report, the new designations cover Bitbank, the company identified as its software developer, Pishtaz Simorgh Electronic Trade Company, and three associates connected to Zanjani’s network. By placing them under OFAC sanctions, the US is effectively barring dealings involving these designated parties where US jurisdiction applies and increasing the risk of blocked assets.
The action is framed as part of a wider effort to target financial channels that US authorities say are being used to support the Iranian regime and the IRGC. In this case, the crypto exchange itself is presented not just as a business platform but as part of a network Treasury says was used for sanctions evasion and financial transfers.
Allegations tied to Babak Zanjani
Treasury describes Zanjani as an Iranian businessman and alleged sanctions evader with interests spanning oil exports, transportation, technology, and financial services. The source article says he has been accused of embezzling billions in oil revenue and of financing projects that support the IRGC and the Iranian regime.
US authorities further allege that exchanges linked to Zanjani have processed funds for wallets tied to the IRGC. In the specific case behind this designation, OFAC claims Zanjani used Bitbank between June and July to transfer hundreds of millions of dollars worth of bitcoin to the IRGC.
Additional activity cited by OFAC
Treasury also said Hormuz Safe Marine Services Authority has used Bitbank since June to move payments to the Iranian regime. That allegation broadens the scope of the case beyond the bitcoin transfers cited in connection with Zanjani and suggests US officials view the exchange as part of a larger payment route for sanctioned activity.
The source report does not provide transaction hashes, wallet addresses, or an independent accounting of the transfers. As presented, the claims come from Treasury’s sanctions case and form the basis for the designations announced by OFAC.
Implications and next step
The immediate effect of the sanctions is to raise legal and compliance risks for US persons and foreign entities that continue to deal with the newly designated parties. Treasury’s action signals that crypto businesses, service providers, and counterparties connected to Iranian digital asset networks may face enforcement exposure if they engage with entities the US has now blocked.
More broadly, the designation extends Washington’s campaign against what it describes as Iran’s use of digital assets to bypass sanctions and fund state-linked actors. The next confirmed step is enforcement of the blocking measures attached to the OFAC designations, with dealings involving the named parties now exposed to sanctions consequences under US rules.
Source: news.bitcoin.com