The U.S. Treasury Department has sanctioned Iranian crypto exchange BitBank, alleging the platform helped move hundreds of millions of dollars in bitcoin to Iran’s Islamic Revolutionary Guard Corps between June and July. The action was announced Thursday by the Treasury’s Office of Foreign Assets Control, or OFAC.

Treasury also designated BitBank’s software developer, Pishtaz Simorgh Electronic Trade Company, along with three associates of previously sanctioned Iranian financier Babak Zanjani. U.S. officials described BitBank as a key digital asset venture allegedly controlled by Zanjani.

Treasury’s allegations against BitBank

According to Treasury, Zanjani used BitBank over a two-month period from June to July to transfer hundreds of millions of dollars to the IRGC in bitcoin. The IRGC is designated as a terrorist organization by the United States, the European Union, and several other governments.

Treasury characterized BitBank as a “priority digital asset venture” under Zanjani’s control. Zanjani had already been sanctioned by OFAC over an alleged network of companies accused of helping launder money and evade sanctions on Iran.

Additional entities and people named

Alongside BitBank, OFAC sanctioned Pishtaz Simorgh Electronic Trade Company, identified by Treasury as the exchange’s software developer. The agency also designated three associates tied to Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.

Treasury further alleged that Hormuz Safe Marine Services Authority has used BitBank since June to transfer collected payments to the Iranian regime. Hormuz Safe appears to be the formal entity behind a bitcoin-settled platform promoted as serving ships traveling through the Strait of Hormuz. Treasury’s release said Iran is seeking significant revenue from that effort.

Message from U.S. officials

In announcing the designations, Treasury Secretary Scott Bessent said the action was meant to show that attempts to finance the Iranian regime through cryptocurrency remain within OFAC’s enforcement reach. He added that those who support the Iranian regime should expect Treasury sanctions.

The Block reported that it sought clarification from OFAC and said it would update its coverage if additional information is provided. No further detail was included in the source report on the specific transaction paths or wallet activity behind the allegations.

Part of a wider enforcement campaign

The BitBank sanctions fit into a broader U.S. effort targeting crypto platforms that authorities say have helped Iran work around sanctions. Treasury has previously taken action against Nobitex and other exchanges under the Economic Fury and Economic Outcast campaigns.

The immediate confirmed next step is the enforcement of OFAC’s designations announced Thursday. Beyond that, the source report indicates that further detail may depend on whether Treasury provides additional clarification about the allegations and the entities involved.

Source: www.theblock.co