US Sanctions Iranian Crypto Exchange BitBank Over Alleged Support for IRGC
The US Department of the Treasury's Office of Foreign Assets Control has imposed sanctions on Iranian crypto exchange BitBank, accusing it of processing Bitcoin payments for ships transiting the Strait of Hormuz. The Treasury alleges that as of June, the Hormuz Safe Marine Services Authority used BitBank to transfer payments it received to the Islamic Revolutionary Guard Corps.
The Treasury also claims 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, including through sanctions on digital asset exchanges.
Treasury Secretary Scott Bessent stated that '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 includes BitBank, its developer Pishtaz Simorgh Electronic Trade Company and three associates of Zanjani.
The Treasury calls them 'key components of the Iranian regime's digital assets-based sanctions evasion infrastructure.' Cointelegraph reached out to BitBank for comment, but it is unclear how they will respond to these allegations.