US Sanctions BitBank Over Alleged Bitcoin Payments to Iranian Regime

The US Department of the Treasury's Office of Foreign Assets Control has announced sanctions against Iranian crypto exchange BitBank, accusing it of processing Bitcoin payments for ships transiting the Strait of Hormuz.

According to the Treasury, as of June, the Hormuz Safe Marine Services Authority used BitBank to transfer payments it received 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.

Treasury Secretary Scott Bessent stated, '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.'

The designation is the latest Treasury action aimed at isolating Iran from the international financial system, including through sanctions on digital asset exchanges.