U.S. Sanctions Iranian Crypto Exchange Over Strait of Hormuz Transit Fees

The U.S. Treasury Department has imposed new sanctions on Bitbank, an Iranian cryptocurrency exchange controlled by Babak Zanjani, who is also sanctioned.

The move was made due to Bitbank's role in processing payments for transit fees collected from vessels navigating the Strait of Hormuz.

The Treasury stated that Bitbank transferred hundreds of millions of dollars to Iran's Islamic Revolutionary Guard Corps (IRGC), making it a 'critical component' of Iran's sanctions-evasion infrastructure utilizing digital assets.

This action is part of Operation Economic Outcast, which aims to isolate Iran economically by targeting its illicit oil trade, financial intermediaries, and shipping industries.