The US Treasury on Sept. 17 imposed sanctions on crypto venture BitBank, alleging the platform moved hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps in June and July. Treasury said BitBank is tied to already-sanctioned Iranian financier Babak Zanjani and framed the action as part of a broader campaign against Iran’s use of digital-asset networks.

The measure goes beyond a single exchange. Treasury also designated Pishtaz Simorgh Electronic Trade Company, identified as BitBank’s developer, along with several Zanjani associates, in a sign that US sanctions enforcement is increasingly aimed at the service providers and infrastructure behind crypto activity, not only at named wallets or end users.

BitBank added to a wider sanctions drive

Treasury linked the BitBank action to Operation Economic Outcast, a wider effort targeting Iran’s digital-assets sector. According to the department, the campaign is meant to expose non-US exchanges, over-the-counter desks, and infrastructure providers that handle significant Iranian crypto activity to secondary sanctions risk and possible loss of access to the US financial system.

The legal basis described in the source article includes Executive Order 13902, under which Washington has targeted sectors including digital assets, technology, gold, aviation, and shipping. In this case, Treasury presented BitBank not as an isolated actor but as part of a broader network tied to Iran’s sanctioned economic channels.

Treasury shifts focus to crypto infrastructure

Treasury Secretary Scott Bessent said the move underscores that crypto infrastructure is also within the reach of the Office of Foreign Assets Control. That marks an important enforcement signal: US authorities are not limiting sanctions pressure to individual blockchain addresses, but are also willing to designate the companies and technical operators that allegedly enable those transactions.

Alongside BitBank, Treasury named Pishtaz Simorgh Electronic Trade Company, which it identified as the platform’s developer, as well as several associates of Zanjani. The action indicates that software, exchange operations, and related support functions may all be treated as sanctionable if authorities believe they are facilitating restricted Iranian activity.

Non-US firms face secondary sanctions risk

Treasury’s warning extends beyond Iranian entities themselves. OFAC said foreign financial institutions and other non-US persons that engage with listed exchanges could be exposed to sanctions if they knowingly process significant transactions for Iran’s crypto sector.

The source article cites examples of exchanges including Wallex, Nobitex, Aban Tether, and Ramzinex in describing the compliance risk. It also notes that foreign banks could be barred from maintaining US correspondent accounts if they are found to facilitate transactions for designated Iranian exchanges, increasing pressure on offshore intermediaries that might otherwise see themselves as outside direct US jurisdiction.

Pressure may reroute, not stop, the flows

The enforcement action may disrupt existing channels, but the source article notes that it may not eliminate the underlying activity. Instead, tighter restrictions could push Iranian-linked crypto flows toward stablecoins, no-KYC venues, decentralized services, or jurisdictions that are harder for US authorities to monitor and police.

That possibility reflects a broader challenge in sanctions enforcement against digital assets. Even when a named exchange or company is cut off, transaction activity can migrate to less transparent venues. The next confirmed step is the sanctions designation itself: entities and intermediaries now face the immediate compliance task of assessing exposure to BitBank, its developer, and the other parties Treasury added to the list.

Source: Cryptopolitan