US Sanctions Iranian Crypto Exchange: Allegations of Bitcoin Transfers to Revolutionary Guard
The US has blacklisted Iranian crypto exchange BitBank for allegedly facilitating the transfer of hundreds of millions of dollars in Bitcoin to the Revolutionary Guard.
The US Department of the Treasury alleged that BitBank was used during the June-July period to transfer hundreds of millions of dollars worth of Bitcoin (BTC) to the Islamic Revolutionary Guard Corps (IRGC). Along with this decision, the exchange’s software developer and three individuals linked to Iranian financier Babak Zanjani were also included in the scope of the sanctions.
The Treasury described BitBank as a “priority digital asset venture” controlled by Zanjani. Zanjani, who was previously sanctioned, is reportedly linked to a network of companies alleged to have assisted in bypassing sanctions against Iran and money laundering.
US also blacklists BitBank’s developer
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) also issued sanctions against BitBank’s software developer, Pishtaz Simorgh Electronic Trade Company. Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari, who are stated to be linked with Zanjani, were also added to the list.
The Treasury also alleged that an entity called Hormuz Safe Marine Services Authority has been using BitBank since June to transfer payments made to the regime. According to previous reports in Iranian media, this entity provided a service where payments were received in Bitcoin from ships passing through the Strait of Hormuz.
Crackdown on Iranian crypto platforms expands
The decision was announced as a continuation of the US’s sanctions campaign against Iran-linked crypto platforms called Operation Economic Outcast. In June, OFAC targeted Nobitex, one of Iran’s major crypto exchanges, as well as Wallex, Bitpin, and Ramzinex.
In August, sanctions were also issued for Shelbit and Aban Tether. US Treasury Secretary Scott Bessent stated that the new sanctions demonstrate that attempts to finance the Iranian leadership through cryptocurrencies do not remain outside of OFAC’s reach.