CoinDesk
OFAC designated Tehran-based BitBank and its software developer, Pishtaz Simorgh Electronic Trade Company, alleging the exchange moved hundreds of millions of dollars in Bitcoin to Iran's Islamic Revolutionary Guard Corps. Treasury also said BitBank processed payments collected by Hormuz Safe Marine Services Authority, which charged tankers $1 million to $2 million for passage through the Strait of Hormuz. The exchange was established in 2024, and the designation bars U.S. persons from dealing with it while freezing property under U.S. jurisdiction. Foreign institutions that process its transactions face potential exclusion from the U.S. financial system.
Why it matters
The action links a Tehran crypto exchange to both alleged transfers to the IRGC and a maritime payment system built around fees for tanker passage. Hormuz Safe Marine Services Authority advertises insurance, traffic control and emergency response for vessels that pay, while shipping lawyers have described the arrangement as a violation of transit rights under the Law of the Sea.
Treasury Secretary Scott Bessent said the designations show that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach. The measure therefore extends sanctions pressure beyond banks and traditional payment channels to the digital asset infrastructure that can connect them.
Market impact
The designation's broadest effect may fall on foreign exchanges and banks that process BitBank-related transactions. A venue in Dubai or a bank in Istanbul could face exclusion from the U.S. financial system even if no American directly handles the transaction, increasing compliance pressure on offshore platforms serving Iranian users.
The action did not identify cryptocurrency wallet addresses. That leaves compliance teams without the address-level indicators OFAC has included in some earlier crypto designations, including the seven Tron wallets published when it named Zedcex in January. Bitcoin businesses will be watching for follow-up wallet listings and related enforcement.
Frequently asked questions
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What did OFAC accuse BitBank of doing?
OFAC alleged that BitBank moved hundreds of millions of dollars in Bitcoin to Iran's Islamic Revolutionary Guard Corps and processed tanker passage fees.
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What is the Strait of Hormuz payment link?
Treasury said BitBank processed fees collected by Hormuz Safe Marine Services Authority, which charged tankers $1 million to $2 million for passage.
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What do the sanctions mean for BitBank?
BitBank's property under U.S. jurisdiction is frozen, and U.S. persons are barred from dealing with the exchange.
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Why could foreign banks and exchanges be affected?
Foreign institutions that process BitBank transactions could face exclusion from the U.S. financial system under the action's secondary sanctions.
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Did OFAC publish crypto wallet addresses for BitBank?
No. The action did not identify wallet addresses, leaving compliance teams without the address-level indicators used in some earlier crypto designations.
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