U.S. Treasury Sanctions Iranian Crypto Exchange BitBank

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has placed Iran‑based digital asset exchange BitBank on its sanctions list, citing its role in a network linked to sanctioned financier Babak Zanjani.

Alleged Sanctions‑Evasion Activities

According to OFAC, BitBank was used between June and July to move hundreds of millions of dollars’ worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps (IRGC). The Treasury also sanctioned the exchange’s developer, Pishtaz Simorgh Electronic Trade Company, and several individuals connected to Zanjani’s broader business network.

Broader Enforcement Context

This action follows previous Treasury rounds that targeted banks, exchanges, facilitators and other digital‑asset businesses accused of helping sanctioned actors bypass traditional financial channels. By sanctioning an operating exchange and its software provider, the Treasury is treating crypto infrastructure similarly to conventional banks and payment processors.

Implications for Crypto Firms

U.S. persons are prohibited from dealing with designated entities, and compliance systems worldwide typically screen for such designations. The sanction may therefore affect exchanges and institutional crypto firms that interact with BitBank or related addresses, prompting heightened sanctions‑risk controls across the industry.