US sanctions Iran’s BitBank for processing ‘Hormuz Safe’ Bitcoin payments

U.S. authorities have sanctioned Iranian cryptocurrency exchange BitBank, accusing it of facilitating Bitcoin payments linked to a maritime insurance scheme operating in the Strait of Hormuz and of moving large sums of digital assets to Iran’s Islamic Revolutionary Guard Corps (IRGC).

Sanctions details

The Office of Foreign Assets Control (OFAC) announced that, as of June, the Hormuz Safe Marine Services Authority used BitBank to transfer payments it received from vessels transiting the Strait of Hormuz to the IRGC. The Treasury described the exchange as a key component of a sanctions‑evasion infrastructure tied to Iranian financier Babak Zanjani.

Broader U.S. actions against Iranian crypto firms

BitBank, its developer Pishtaz Simorgh Electronic Trade Company, and three associates of Zanjani were added to the sanctions list. This follows earlier designations of other Iranian exchanges, including Shelbit, Aban Tether, and the country’s largest platform, Nobitex. In July, the U.S. government also ordered the freezing of more than $130 million in USDT linked to Iran.

Context and implications

U.S. Treasury Secretary Scott Bessent said the designations demonstrate that cryptocurrency‑based financing of the Iranian regime is within OFAC’s reach. The move is part of a broader effort to isolate Iran from the international financial system.

Responses and background

Cointelegraph reached out to BitBank for comment but received no response. The exchange is distinct from Japan’s Bitbank, Inc., which was acquired by SBI Holdings in June 2024. Iran’s central bank has recently eased foreign‑currency controls to encourage the repatriation of overseas earnings, including through crypto, as sanctions pressure intensifies.