US Sanctions BitBank, Accusing It of Processing Bitcoin Payments for Iran's IRGC
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on BitBank, an Iranian crypto exchange. The move targets the company for processing 'Hormuz Safe' Bitcoin payments from ships transiting the Strait of Hormuz.
According to OFAC, as of June, the Hormuz Safe Marine Services Authority used BitBank to transfer payments received in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC). The Treasury alleged that this is part of an IRGC-backed scheme forcing vessels to buy maritime insurance for passage, including coverage against seizures by Iran itself.
The designation is the latest action aimed at isolating Iran from the international financial system. US Treasury Secretary Scott Bessent said, 'Today's designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach.'