U.S. Treasury Cracks Down on Iranian Crypto Exchange BitBank
The U.S. Treasury has sanctioned Iranian cryptocurrency exchange BitBank for allegedly facilitating Bitcoin transfers worth hundreds of millions to Iran's Islamic Revolutionary Guard Corps (IRGC).
The Treasury's Office of Foreign Assets Control (OFAC) identified BitBank as a central component in Iran's digital currency-based sanctions circumvention infrastructure.
According to reports, Iranian businessman Babak Zanjani allegedly leveraged BitBank's infrastructure to channel hundreds of millions of dollars in Bitcoin directly to the IRGC through the Hormuz Safe Marine Services Authority.
The Hormuz Safe program requires vessels navigating through the Strait of Hormuz to purchase maritime insurance coverage, which includes protection from potential Iranian seizure, and these payments are settled exclusively in Bitcoin.
Treasury Secretary Scott Bessent delivered an unambiguous message: 'If you support the Iranian regime, the Department of the Treasury will sanction you.'