US Sanctions BitBank Crypto Exchange Over Iran Links

The US Treasury sanctioned Iran’s BitBank crypto exchange, alleging it moved hundreds of millions in Bitcoin to the IRGC and supported sanctions evasion.

The United States has sanctioned Iranian cryptocurrency exchange BitBank, accusing the platform of helping move digital assets to Iran’s Islamic Revolutionary Guard Corps (IRGC) and supporting a broader sanctions-evasion network. The U.S. Treasury Department announced the action on September 17, 2026, as part of its Operation Economic Outcast campaign targeting financial channels connected to the Iranian regime.

The action also targets BitBank’s software developer and three associates of Iranian financier Babak Zanjani, whom U.S. authorities previously sanctioned. The Treasury says BitBank was used to facilitate hundreds of millions of dollars worth of Bitcoin transfers to the IRGC between June and July.

Why Did the US Sanction BitBank?

According to the Office of Foreign Assets Control (OFAC), BitBank is a Tehran-based digital-asset exchange controlled by Zanjani, an Iranian financier already subject to U.S. sanctions.

Treasury alleges that Zanjani used BitBank as part of a network that provided financial services connected to Iran’s state-linked entities and sanctions-evasion activities.

The department said BitBank was also connected to the Hormuz Safe Marine Services Authority, an Iranian entity previously sanctioned by the United States. Since June, Treasury says, that organization used BitBank to transfer payments collected from vessels seeking passage through the Strait of Hormuz.

BitBank and Bitcoin Transfers to the IRGC

One of the most significant allegations concerns Bitcoin transfers to the IRGC.

Treasury says BitBank facilitated the movement of hundreds of millions of dollars worth of Bitcoin to the organization during June and July 2026. The department describes those transactions as part of Iran’s digital-asset-based sanctions-evasion infrastructure.

The IRGC is a major Iranian military organization that the United States has designated as a foreign terrorist organization.

The sanctions do not mean that cryptocurrency itself is being sanctioned. Instead, the U.S. action targets specific people, companies and financial infrastructure that Treasury says were involved in prohibited activities.

Who Else Was Sanctioned?

OFAC also designated Pishtaz Simorgh Electronic Trade Company, the company Treasury identifies as BitBank’s software developer.

Three individuals associated with Zanjani were also designated: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.

Treasury says the individuals were important participants in Zanjani’s wider financial network. According to the department, Hossein Ali Zaker Hossein was involved in multiple sanctions-evasion activities, including Iranian oil exports and digital-asset transactions that ultimately reached the IRGC.

What Are the Consequences of the Sanctions?

OFAC sanctions generally block the property and interests in property of designated persons that are in the United States or within the possession or control of U.S. persons.

U.S. persons are generally prohibited from engaging in transactions involving blocked property unless authorized by OFAC.

The consequences can also extend beyond the United States. Treasury has warned that foreign companies facilitating transactions for sanctioned Iranian networks can face secondary-sanctions exposure and potentially lose access to the U.S. financial system.

OFAC has separately stated that Iranian digital-asset exchanges are treated as Iranian financial institutions under applicable U.S. sanctions rules, meaning their property within U.S. jurisdiction can be blocked.

BitBank Sanctions Expand US Crypto Enforcement

The BitBank designation is part of a broader U.S. effort to target cryptocurrency infrastructure allegedly used by Iranian entities.

In June, Treasury sanctioned Nobitex, described by the department as Iran’s largest digital-asset exchange, along with other Iranian exchanges. In August, OFAC announced additional sanctions against crypto exchanges it said were being used to launder funds and support the IRGC.

The latest action shows that U.S. sanctions enforcement is increasingly focused not only on traditional banks but also on cryptocurrency exchanges, developers and financial intermediaries.

What Does This Mean for the Crypto Industry?

The BitBank case highlights the growing compliance risks facing cryptocurrency exchanges that operate in jurisdictions subject to U.S. sanctions.

For global exchanges, screening customers, counterparties and wallet activity can become increasingly important. Companies that interact with sanctioned entities may face restrictions even when transactions involve digital assets rather than traditional banking channels.

At the same time, the case demonstrates that cryptocurrency transactions can remain subject to government tracing and enforcement. Treasury’s action shows that U.S. authorities are willing to target specific digital-asset infrastructure when they allege it is being used to bypass financial restrictions.

Conclusion

The U.S. sanctions against BitBank mark another major step in Washington’s effort to disrupt cryptocurrency-based financial networks linked to Iran. Treasury alleges that the exchange moved substantial Bitcoin amounts to the IRGC and helped process payments connected to an Iranian maritime scheme.

For the wider crypto industry, the case underscores a central compliance lesson: digital assets do not place transactions outside U.S. sanctions enforcement. Exchanges, financial institutions and blockchain businesses must continue monitoring their exposure to sanctioned individuals, entities and jurisdictions as enforcement expands.

FAQs

What is BitBank?
BitBank is an Iranian digital-asset exchange that the U.S. Treasury says is controlled by sanctioned Iranian financier Babak Zanjani.

Why did the US sanction BitBank?
Treasury alleges BitBank facilitated Bitcoin transfers to the IRGC and supported Iran-linked sanctions-evasion activities.

How much Bitcoin did BitBank allegedly transfer?
Treasury says the exchange facilitated hundreds of millions of dollars worth of Bitcoin to the IRGC between June and July 2026.

What happens to a company after OFAC sanctions it?
Its property and interests in property subject to U.S. jurisdiction are generally blocked, and U.S. persons are generally prohibited from dealing with it unless authorized.

Does the BitBank case mean Bitcoin is sanctioned?
No. The U.S. sanctions target specific entities and individuals allegedly involved in prohibited activities, not Bitcoin as a cryptocurrency.

Will US crypto exchanges be affected?
The case reinforces the importance of sanctions compliance for exchanges and other digital-asset businesses, particularly when dealing with customers, counterparties or transactions connected to sanctioned jurisdictions.