US Sanctions Iranian Crypto Firm Over Strait of Hormuz Payments

The US Department of the Treasury has sanctioned Bitbank, an Iranian cryptocurrency firm led by Babak Zanjani. According to the Treasury's Office of Foreign Assets Control (OFAC), Bitbank is a key component of Iran's digital asset-based sanctions evasion infrastructure.

Bitbank was used to channel funds to the Islamic Revolutionary Guard Corps (IRGC) and processed payments related to vessel transits through the Strait of Hormuz. The Treasury explained that Bitbank transferred hundreds of millions of dollars to the IRGC.

The latest round of sanctions is part of the Trump administration's campaign to economically isolate Iran. This move aims to restrict Iran's ability to use cryptocurrency for illicit activities.