The U.S. Treasury Department has sanctioned Iran-based cryptocurrency platform BitBank, alleging that it transferred hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps between June and July. The action places BitBank among a growing number of Iranian digital-asset businesses accused by Washington of helping sanctioned entities move money outside conventional banking channels.
The Treasury’s Office of Foreign Assets Control, or OFAC, also designated BitBank’s software developer, Pishtaz Simorgh Electronic Trade Company. Three associates of Iranian financier Babak Zanjani were added to the sanctions list: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
OFAC described BitBank as a “priority digital asset venture” controlled by Zanjani, who had already been sanctioned by the United States over an alleged network of firms involved in money laundering and sanctions evasion. The agency did not publish a more precise value for the Bitcoin transfers beyond its claim that they totaled hundreds of millions of dollars.
The IRGC is designated by the United States as a foreign terrorist organization. The European Union and several other governments also maintain restrictive measures targeting the force and related entities.
BitBank accused of moving payments for Iranian authorities
Treasury also alleged that Hormuz Safe Marine Services Authority had used BitBank since June to transfer payments to Iran’s government. Hormuz Safe has been linked to a Bitcoin-settled platform reported by Iranian media in May.
That platform was promoted as a service offering coverage for ships traveling through the Strait of Hormuz, one of the world’s most strategically important maritime corridors for energy shipments. Iranian media coverage presented it as a commercial tool for maritime activity, while U.S. authorities now allege its payment structure formed part of a sanctions-evasion network.
Iran had said it was targeting more than $10 billion in revenue for the platform. Treasury’s allegations place that business ambition in a far more sensitive setting: one involving a state-linked maritime service, Bitcoin payments and an exchange accused of facilitating transfers to the IRGC.
The designations block any property or interests in property of the listed persons and entities that come under U.S. jurisdiction. U.S. persons are generally prohibited from dealing with them, while non-U.S. financial institutions and companies can face sanctions exposure if they conduct certain transactions involving designated parties.
For blockchain businesses, the case reinforces the compliance risk around indirect exposure. A wallet may not be publicly labeled as belonging to a sanctioned organization, yet it can be connected through intermediaries, software providers, payment platforms or services operated by already-designated individuals.
Operation economic outcast expands Iran crypto pressure
Treasury said the action falls under “Operation Economic Outcast,” launched on Aug. 24 as a continuation of an earlier campaign called “Economic Fury.” The initiatives focus on financial networks that U.S. authorities say enable the Iranian government, the IRGC and associated actors to obtain or transfer funds despite international restrictions.
BitBank is the latest in a sequence of measures against Iranian crypto infrastructure. In June, OFAC sanctioned Nobitex, an Iranian exchange, alongside Wallex, Bitpin and Ramzinex under the Economic Fury campaign.
Treasury said at the time that Nobitex processed more than half of Iran’s digital-asset inflows in 2025 and had facilitated transactions involving the IRGC and other sanctioned entities. OFAC followed in August with sanctions on Shelbit and Aban Tether, extending the campaign to additional Iranian crypto-related services.
The progression from major trading platforms to a purportedly specialized Bitcoin payment operation suggests U.S. enforcement is examining the layers surrounding crypto transfers rather than concentrating only on consumer-facing exchanges. Software developers, payment facilitators and people connected to platform ownership can all become targets where authorities allege they support sanctioned financial activity.
Compliance risks extend beyond Iranian platforms
The sanctions also raise practical concerns for companies handling cross-border crypto transactions. Screening customers alone may not identify exposure where funds pass through nested services, over-the-counter brokers, third-party wallets or platforms that have recently been designated.
Treasury’s action does not establish that every user of BitBank or related Iranian services knowingly dealt with the IRGC. Its designations instead center on alleged control, facilitation and transaction activity involving the platform and named individuals. That distinction will matter to firms assessing historical exposure, particularly where transaction records reveal contact with addresses or services connected to the sanctioned network.
Blockchain analytics can help trace transfers between known addresses, though the technology has limits. Bitcoin movements can be observed on the public ledger, but identifying the person or organization controlling an address often depends on additional information, including service records, public disclosures and law-enforcement findings.
U.S.-linked firms that identify blocked property are generally required to freeze it and report it to OFAC. Other businesses operating internationally face a separate commercial calculation: access to the U.S. financial system can be threatened if they are found to have materially assisted designated actors.
The BitBank case therefore adds another pressure point for Iran’s crypto market. As authorities target platforms accused of providing settlement, payments or liquidity to sanctioned entities, operators may find that the infrastructure around a transaction carries as much regulatory risk as the digital asset being transferred.
Concerned about sanctions and crypto compliance? Learn how crypto crime trends shape safer trading decisions in 2025.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
