US Treasury Sanctions Iranian Crypto Exchange BitBank for Alleged IRGC Ties

The U.S. Treasury's Office of Foreign Assets Control (OFAC) has sanctioned Iranian digital asset exchange BitBank and its developer Pishtaz Simorgh Electronic Trade Company for allegedly facilitating the movement of hundreds of millions of dollars in Bitcoin to Iran's Islamic Revolutionary Guard Corps (IRGC).

According to OFAC, between June and July, Zanjani used BitBank to move the large sum of cryptocurrency. This action is part of a broader Treasury campaign against Iran-linked financial infrastructure.

The sanctions designation marks an escalation in enforcement against crypto infrastructure, signaling that regulators will treat exchanges and software providers like banks and payment processors.

This development raises compliance and screening risks for Centralized Exchanges (CEXs), Decentralized Exchanges (DEXs), and institutional crypto firms worldwide. The action also highlights the need for increased scrutiny of digital asset businesses to prevent sanctions evasion.