US Targets Iran's Crypto Lifeline in BitBank Sanctions

The US Treasury Department has imposed sanctions on BitBank, an Iranian cryptocurrency exchange, as part of its campaign to isolate Iran's financial networks. The move targets what officials describe as Tehran's growing use of digital assets to bypass sanctions and access international finance.

The Treasury Department's Office of Foreign Assets Control (OFAC) designated BitBank, which is controlled by financier Babak Zanjani, who was already under US sanctions for allegedly helping Iran evade oil and financial restrictions. The designation freezes any property or interests in property held by the targets within US jurisdiction and prohibits US persons from conducting transactions with them.

The allegations against BitBank include transferring hundreds of millions of dollars in digital assets to the Islamic Revolutionary Guard Corps (IRGC). It is also accused of processing payments tied to shipping access through the Strait of Hormuz, a major flashpoint in the U.S.-Iran conflict. The move targets what US officials describe as Tehran's growing use of digital assets to bypass sanctions and maintain access to international finance.