US Sanctions BitBank Over Alleged IRGC Crypto Transfers

The US Treasury has imposed sanctions on Iranian cryptocurrency exchange BitBank and its software developer, Pishtaz Simorgh Electronic Trade Company, along with three individuals associated with financier Babak Zanjani. The action is part of Operation Economic Outcast and alleges that the platform helped move hundreds of millions of dollars' worth of Bitcoin to the Islamic Revolutionary Guard Corps between June and July.

The sanctions raise questions about exchange identification, corporate connections, and the limits of screening only named customers for financial institutions. Treasury's published list update identifies BitBank3 as an Iranian entity with an address in Tehran, while Pishtaz Simorgh is described as the exchange's developer and a subsidiary of Dot One Value Creation Group.

The case highlights the importance of understanding network information to implement practical controls. OFAC recommends combining customer identification, geographic information, sanctions screening, and transaction controls within a risk-based program. Institutions should reconcile newly listed identities with customer records and existing counterparty information, distinguishing confirmed identity matches from similar names.