U.S. Treasury sanctions Iranian exchange BitBank for IRGC-linked Bitcoin transfers

U.S. Treasury sanctioned Iranian digital asset exchange BitBank and related entities, alleging the platform enabled large-scale Bitcoin transfers linked to Iran’s Islamic Revolutionary Guard Corps. OFAC designated BitBank as part of a sanctions-evasion network tied to financier Babak Zanjani and extended sanctions to its developer, Pishtaz Simorgh Electronic Trade Company, and several associated individuals. Treasury states that from June to July, Zanjani used BitBank to move hundreds of millions of dollars in Bitcoin to the IRGC. These are sanctions-based allegations, not criminal convictions.

Escalation: Targeting Crypto Infrastructure

Treasury’s action expands prior enforcement against Iran-linked financial channels by directly sanctioning an operating crypto exchange and its software provider. The move signals that U.S. authorities are treating crypto infrastructure similarly to banks and payment processors when they assess sanctions-evasion risk.

Operational Impact for Compliance

OFAC designations prohibit U.S. persons from transacting with listed entities and trigger global screening of connected entities, addresses and counterparties. This can widen operational exposure beyond the named exchange. Firms’ blockchain analytics and wallet-screening systems remain relevant: transparent ledgers aid tracing, but firms must integrate sanctions controls as standard financial compliance.

Source: U.S. Department of the Treasury / OFAC — https://home.treasury.gov/news/press-releases/sb0632

This article was written by the News Desk and edited by Samuel Rae. This report is based on information released by Home. at Home