U.S. sanctions Iran's BitBank over alleged Bitcoin payments tied to Hormuz Strait transits

The U.S. Treasury on Thursday placed Iranian cryptocurrency exchange BitBank on its sanctions list, alleging the platform helped process Bitcoin payments connected to vessel passage through the Strait of Hormuz. The Treasury's Office of Foreign Assets Control (OFAC) said that as of June, an entity it identified as Hormuz Safe Marine Services Authority used BitBank to move funds that were ultimately directed to the Islamic Revolutionary Guard Corps. U.S. officials also linked the network to Iranian businessman Babak Zanjani, accusing him of using the system to transfer hundreds of millions of dollars in Bitcoin. According to U.S. authorities, Hormuz Safe had previously been tied to a fee arrangement associated with the Revolutionary Guard that required ships transiting the area to buy maritime insurance, including coverage against the risk of Iranian seizure. Alongside BitBank, the U.S. sanctioned its developer, Pishtaz Simorgh Electronic Trade Company, as well as three individuals associated with Zanjani. Treasury Secretary Scott Bessent said the action underscores that efforts to finance Iran's regime through cryptocurrency remain within OFAC's enforcement reach. The designation follows a series of recent U.S. moves targeting Iran's crypto channels. In August, the U.S. sanctioned Shelbit and Aban Tether, accusing them of helping Iran evade sanctions. In June, Washington sanctioned four crypto exchanges, including Nobitex, Iran's largest trading platform. In July, the U.S. ordered the freezing of more than $130 million in USDt held in wallets linked to Iran. Iran has also taken steps aimed at easing external financial pressure. The Financial Times reported earlier this month that amid tighter U.S. measures, Iran's central bank has loosened foreign-exchange controls and is encouraging businesses to bring back overseas earnings, including funds routed through cryptocurrency channels. CoinDesk noted the sanctioned Iranian BitBank is unrelated to Japan's licensed exchange bitbank, inc., founded in 2014 and acquired by SBI Holdings in June. U.S. Treasury sanctions information lists the Iranian BitBank as established in 2024.