The U.S. Department of the Treasury has officially sanctioned the Iranian cryptocurrency exchange BitBank. This action is part of the broader Operation Economic Outcast, an economic campaign directed against the Islamic Republic of Iran. According to the Treasury, the exchange facilitated bitcoin transfers to the Iranian regime, specifically involving the Hormuz Safe Marine Services Authority since June.
The sanctions also target financier Babak Zanjani, the software developer Pishtaz Simorgh Electronic Trade Company, and three associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. The Treasury stated that these measures aim to dismantle the financial architecture used to launder funds. Secretary of the Treasury Scott Bessent emphasized that efforts to finance the regime via digital assets remain within the reach of the Office of Foreign Assets Control.
Iran has increasingly utilized cryptocurrencies to bypass long-standing economic penalties. Earlier this year, the country launched a bitcoin-backed insurance service for its shipping companies. In July, the U.S. reported freezing crypto assets linked to the regime, primarily in the form of Tether’s USDT stablecoin. While stablecoins can be frozen by issuers, the Treasury noted that bitcoin remains decentralized and cannot be controlled by a single entity.
