CryptoSlate
The US Treasury Department’s Office of Foreign Assets Control sanctioned Iranian crypto exchange BitBank, its software developer Pishtaz Simorgh Electronic Trade Company and three people tied to financier Babak Zanjani’s network on Sept. 17. OFAC alleged that BitBank facilitated hundreds of millions of dollars in Bitcoin transfers to the Islamic Revolutionary Guard Corps between June and July.
Why it matters
Treasury also alleged that Hormuz Safe Marine Services Authority used BitBank to move receipts to the Iranian government. The designations were issued under Executive Order 13902, which Treasury has expanded to cover Iran’s digital-asset sector. Treasury Secretary Scott Bessent said the action shows that crypto-based financing is not beyond OFAC’s reach.
The move targets more than wallet addresses or trading venues. Pishtaz Simorgh developed BitBank’s software, while its chief executive Mohammad Mahdi Zaker Hossein was designated for acting on behalf of the company. Two other executives were sanctioned over alleged links to Zanjani’s wider sanctions-evasion network.
Market impact
The designations deepen Operation Economic Outcast, launched on Aug. 24 to restrict channels used to move Iranian oil revenue, evade sanctions and fund the IRGC. Treasury has also widened secondary-sanctions exposure for non-US companies that continue doing business with targeted Iranian entities.
The action follows earlier designations against Iranian platforms including Nobitex, Wallex, Bitpin, Ramzinex, Shelbit and Aban Tether. TRM Labs said its investigation identified about $1 billion in IRGC-linked activity around Zanjani-associated exchanges and related payment and corporate infrastructure. The broader signal is clear: software providers, executives and commercial partners can face sanctions exposure alongside the exchange itself.
Frequently asked questions
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Why did OFAC sanction BitBank and its software developer?
OFAC alleged that BitBank facilitated hundreds of millions of dollars in Bitcoin transfers to the IRGC. Pishtaz Simorgh was targeted because it developed BitBank’s software.
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Which Iranian entities allegedly used BitBank?
Treasury alleged that financier Babak Zanjani used BitBank between June and July and that Hormuz Safe Marine Services Authority used it to move receipts to the Iranian government.
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What does Executive Order 13902 cover in this action?
The designations were issued under Executive Order 13902, which Treasury has expanded to cover Iran’s digital-asset sector.
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How does the action affect companies outside the United States?
Treasury has widened secondary-sanctions exposure for non-US companies that continue doing business with targeted Iranian entities.
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What broader campaign does the BitBank action join?
The action deepens Operation Economic Outcast, which targets channels used to move Iranian oil revenue, evade sanctions and fund the IRGC.
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