US Sanctions Iranian Crypto Exchange Over Strait of Hormuz Payments

The US Treasury has announced sanctions on BitBank, an Iranian cryptocurrency exchange controlled by Babak Zanjani. The exchange is accused of processing payments for ships to transit safely through the Strait of Hormuz. According to the Treasury, BitBank routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps.

The Treasury describes BitBank as a key component in Iran's digital assets-based sanctions-evasion infrastructure. Zanjani has been a key figure in Iran's sanctions-evasion networks and was sentenced to death by Iranian authorities in 2016 for embezzlement. His sentence was commuted in 2024, and the following year he re-emerged as a backer of Iranian government economic projects.

The US Treasury is part of 'Operation Economic Outcast', aimed at isolating Iran economically and disrupting its global financial, commercial, and logistical networks. The strategy has targeted Iran's illicit oil trade, financial intermediaries, exchange houses, shipping, aviation, and front companies. BitBank's software developer, Pishtaz Simorgh Electronic Trade Company, and three close associates of Zanjani have also been sanctioned.