US Sanctions Iranian Crypto Exchange BitBank Over Alleged IRGC Ties

The US Treasury has imposed sanctions on an Iranian cryptocurrency exchange called BitBank, which is controlled by sanctioned financier Babak Zanjani. The move is part of a broader strategy to isolate Iran economically and disrupt its global financial networks.

According to the Treasury, BitBank has routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC) through payments for ships to transit safely through the Strait of Hormuz. These payments are made to Iran's newly established Hormuz Safe Marine Services Authority.

Zanjani has been a key figure in Iran's sanctions-evasion networks and has been involved in several financial projects, including Zedcex Exchange Limited and Zedxion Exchange Limited. He was sentenced to death by Iranian authorities in 2016 for embezzlement but had his sentence commuted in 2024.

The US also sanctioned Pishtaz Simorgh Electronic Trade Company, the software developer behind BitBank, and three close associates of Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. This move is part of 'Operation Economic Outcast', which targets Iran's illicit oil trade, financial intermediaries, exchange houses, shipping, aviation, and front companies.