U.S. Treasury Sanctions Iran-Based Crypto Exchange BitBank Over Alleged Bitcoin Payments Linked to Strait of Hormuz

The U.S. Department of the Treasury has sanctioned Iranian cryptocurrency exchange BitBank, accusing the platform of facilitating Bitcoin payments tied to so-called "safe passage fees" for vessels transiting the Strait of Hormuz and moving large volumes of digital assets on Iran's behalf, CoinMarketCap reported. The Treasury's Office of Foreign Assets Control (OFAC) said that since June, an entity described as the "Hormuz Security Maritime Services Authority" has used BitBank to transfer payments it collected. U.S. authorities have previously accused the group of demanding bitcoin from ships in exchange for passage rights. The Treasury said the underlying fee arrangement was placed under sanctions in July, and the latest step extends enforcement to cryptocurrency infrastructure allegedly supporting the scheme. Treasury officials said hundreds of millions of dollars in Bitcoin have flowed to the Islamic Revolutionary Guard Corps (IRGC). According to the U.S. government, BitBank was used between June and July to transfer Bitcoin worth hundreds of millions of dollars to the IRGC as part of a broader network Iran allegedly uses to evade sanctions through digital assets. Treasury Secretary Scott Bessent said using cryptocurrency to finance the Iranian regime falls squarely within OFAC's enforcement mandate, warning that any entity supporting the regime could face sanctions. OFAC also designated individuals and companies linked to BitBank. The Treasury said BitBank is controlled by Iranian financier Babak Zanjani, who was added to the OFAC sanctions list in January. Also sanctioned were Pishtaz Simorgh Electronic Trade Company, which developed software for BitBank, and three executives from Dot One Value Creation Group: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. The Treasury said the designations were made under Executive Order 13902, which the U.S. government expanded in August to cover operators of Iranian digital asset businesses. U.S.-based assets of those listed will be frozen, and entities owned 50% or more by designated parties are typically subject to restrictions. Non-U.S. companies that do business with the sanctioned parties may also face secondary sanctions. The move forms part of the Treasury's "Economic Isolation Initiative," announced in late August, aimed at cutting off Iran's remaining external economic channels and coordinating implementation with European, British, and Gulf partners.