U.S. Sanctions Iranian Crypto Exchange Tied to Iran's Hormuz Transit Payments

The U.S. Treasury Department has imposed sanctions on BitBank, an Iranian cryptocurrency exchange tied to Hormuz Safe Marine Services Authority, which collects payments from ships transiting the Strait of Hormuz.

The Office of Foreign Assets Control (OFAC) designated BitBank and its developer, Pishtaz Simorgh Electronic Trade Company, along with three executives tied to sanctioned financier Babak Zanjani. The sanctions come after Treasury alleged that Hormuz Safe used BitBank since June to transfer payments it collected from the Iranian government.

Treasury also accused Zanjani of using BitBank between June and July to move hundreds of millions of dollars' worth of Bitcoin to the Islamic Revolutionary Guard Corps (IRGC). This is the latest action in Washington's effort to disrupt Iran's financial system surrounding shipping through Hormuz, which has been built around the Strait.