US Hits Iranian Crypto Exchange with Sanctions Over Strait of Hormuz Tolls
The US Treasury has designated BitBank, a Tehran-based cryptocurrency exchange, for allegedly facilitating transactions between Iran's regime and the Islamic Revolutionary Guard Corps (IRGC).
According to the Office of Foreign Assets Control (OFAC), BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC since June. The funds were collected by Hormuz Safe Marine Services Authority, a company set up by Iran's economy ministry to sell 'safe passage' insurance to ships crossing the Strait of Hormuz.
The OFAC alleged that the arrangement is a violation of transit rights under the Law of the Sea and a ploy by Iran to finance its regime using cryptocurrencies. The designation means BitBank's property in US jurisdiction is frozen, and Americans are barred from dealing with it.
The move also extends secondary sanctions to foreign firms processing BitBank flows, which could lead to them being cut off from the US financial system. This development has significant implications for offshore venues that take Iranian users, as they risk losing access to dollars rather than facing a US court.