U.S. Treasury Sanctions Crypto Exchange Allegedly Funding Iranian Revolutionary Guard Operations

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against BitBank, a cryptocurrency exchange it says was used to funnel Bitcoin to Iran’s Revolutionary Guard Corps (RGC). According to OFAC, the illicit transfers amounted to hundreds of millions of dollars in Bitcoin over a span of two months.

Alleged Role in Funding Iranian Naval Activities

OFAC’s statement links the Bitcoin flows to the RGC’s operations involving ships transiting the strategic Strait of Hormuz. The agency alleges that the cryptocurrency transactions were used to pay for “bitcoin tolls” levied on vessels navigating the waterway.

Sanctions Details

The Treasury has placed BitBank and its associated entities on the Specially Designated Nationals (SDN) list, prohibiting U.S. persons from dealing with the exchange and freezing any U.S.-based assets under its control.

Implications for the Crypto Industry

The action underscores growing regulatory scrutiny of crypto platforms that may be exploited for illicit financing, particularly in sanctioned jurisdictions. It also serves as a warning to exchanges to implement robust anti‑money‑laundering (AML) and sanctions‑compliance programs.