U.S. Treasury Hits BitBank with Sanctions Over Iran Bitcoin Ties

Principaux enseignements :

• U.S. Treasury sanctioned BitBank over alleged Iran-linked crypto transfers.
• OFAC targeted BitBank’s developer and three associates of Babak Zanjani.
• The action expanded sanctions pressure on Iran’s digital asset sector.

The U.S. Treasury sanctioned Iranian digital asset exchange BitBank on Sept. 17, targeting alleged crypto-based sanctions evasion. The Office of Foreign Assets Control said BitBank helped move Bitcoin tied to Iran’s state-linked financial networks.

The action extended Washington’s sanctions campaign into Iran’s digital asset sector. It also raised compliance risks for exchanges and financial institutions handling transactions linked to designated Iranian platforms.

U.S. Treasury Targets BitBank Under Iran Sanctions

The U.S. Treasury said the Office of Foreign Assets Control designated BitBank under Executive Order 13902. The order authorizes sanctions against persons operating in specified sectors of Iran’s economy.

Treasury described BitBank as a digital-asset venture controlled by the sanctioned Iranian financier Babak Zanjani. It also designated the BitBank developer, Pishtaz Simorgh Electronic Trade Company, and three Zanjani associates.

Those individuals were Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. OFAC added the entities and individuals to its Specially Designated Nationals list on Sept. 17.

Treasury said Hormuz Safe Marine Services Authority had used BitBank since June to transfer payments to Iran. OFAC had already designated that authority before the latest action.

The department alleged Zanjani used BitBank to transfer Bitcoin to the Islamic Revolutionary Guard Corps. Treasury said the transfers occurred between June and July and totaled hundreds of millions of dollars.

Treasury Secretary Scott Bessent said cryptocurrency financing remained within OFAC’s enforcement reach. He said the department would sanction parties supporting the Iranian government through such financial channels.

Executive Order 13902 Expands U.S. Treasury Authority

Executive Order 13902, issued in January 2020, created sanctions authority covering additional Iranian economic sectors. Treasury said it now applies that authority to Iran’s digital asset sector.

The Sept. 17 designations, therefore, carried consequences beyond BitBank’s direct U.S. exposure. OFAC rules block property and interests in property held within U.S. jurisdiction for designated persons.

U.S. persons generally cannot transact with blocked parties without an applicable exemption or OFAC authorization. Entities owned 50% or more by blocked persons also become blocked under OFAC rules.

OFAC’s May 1 guidance separately stated that Iranian digital asset exchanges qualify as Iranian financial institutions. Their property within U.S. jurisdiction, therefore, remains blocked under the Iranian Transactions and Sanctions Regulations.

The agency’s Aug. 7 guidance also warned non-U.S. firms about secondary sanctions exposure. Foreign institutions can face restrictions after certain transactions with exchanges designated under Executive Order 13902.

That guidance gives OFAC authority to target parties providing material or technological support to designated exchanges. It can also restrict correspondent banking access for foreign institutions, facilitating certain transactions.

Treasury’s Sept. 17 notice also warned that sanctions violations can trigger civil or criminal penalties. OFAC may impose civil penalties under a strict liability standard in applicable cases.

BitBank Action Extends Digital Asset Enforcement

BitBank’s designation formed part of Operation Economic Outcast. Treasury announced the campaign on Aug. 24 to target Iran-linked financial channels and sanctions evasion networks.

Treasury had already used the operation against banks, transportation networks, and other financial intermediaries. A Sept. 14 action also targeted Russia’s VTB Bank over alleged Iran-linked sanctions evasion.

The department said BitBank operated as part of Zanjani’s wider digital asset network. Treasury had previously sanctioned other entities linked to Zanjani during 2026.

OFAC records identified BitBank as an Iranian entity established in 2024. The Sept. 17 listing classified it under financial and insurance activities and marked it as having secondary sanctions exposure.

Treasury said Pishtaz Simorgh developed BitBank’s digital asset software. OFAC also identified Mohammad Mahdi Zaker Hossein as the company’s chief executive officer.

Pour crypto firms, the designation raises screening and counterparty risks around Iranian platforms. Exchanges and payment providers may review wallet exposure, ownership links, and transaction counterparties against OFAC records.

The action did not establish a general ban on cryptocurrency transactions. Instead, it applied existing sanctions authorities to specific Iranian entities and connected financial activity.

U.S. Treasury Signals More Iran Crypto Scrutiny

The U.S. Treasury said Operation Economic Outcast would continue targeting financial networks linked to Iran. The department also warned institutions about dealings involving sanctioned Iranian digital asset exchanges.

OFAC’s current guidance already covers U.S. and non-U.S. exposure to designated Iranian exchanges. That framework provides compliance teams with a solid basis for reviewing BitBank-related activity.

The next verifiable development will come through OFAC’s sanctions records and further Treasury designations. Any additions would appear through official Specially Designated Nationals updates or new Iran-related guidance.

This article is for informational purposes only and does not constitute legal, financial, or investment advice. Sanctions requirements depend on jurisdiction, counterparties, and specific transaction circumstances.

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