US Sanctions Iranian Cryptocurrency Exchange Accused of Facilitating Hormuz Payments
The US Treasury has imposed sanctions on BitBank, an Iranian cryptocurrency exchange controlled by Babak Zanjani, accusing it of processing payments for ships to transit safely through the Strait of Hormuz. The exchange is a key component in Iran's digital assets-based sanctions-evasion infrastructure, according to the Treasury.
Zanjani has long been involved 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 he re-emerged as a backer of Iranian government economic projects. The Treasury designated Zedcex Exchange Limited and Zedxion Exchange Limited, two digital asset projects owned by Zanjani, in January.
The sanctions are part of the 'Operation Economic Outcast' strategy aimed at isolating Iran economically and disrupting its global financial, commercial, and logistical networks. BitBank routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC), according to the Treasury. The US also sanctioned Pishtaz Simorgh Electronic Trade Company, the software developer behind BitBank, and three close associates of Zanjani.