Full Breakdown
U.S. Treasury Sanctions Iranian Crypto Exchange BitBank for Funding IRGC
By Drooid · · How we work
Core Event: Designation of BitBank as a Priority Digital-Asset Target
In September 2026 the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) designated the cryptocurrency exchange BitBank as a “priority” target under Operation Economic Outcast. The Treasury said BitBank processed payments for vessels transiting the Strait of Hormuz and transferred hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC). The exchange was also used to move funds to Iran’s Hormuz Safe Marine Services Authority.
Background & Context: Zanjani’s Sanctions-Evasion Network and the Operation
Babak Zanjani, a sanctioned Iranian financier, controls BitBank. Earlier in 2026 the Treasury sanctioned Zanjani’s two largest digital-asset platforms, Zedcex Exchange Limited and Zedxion Exchange Limited, for laundering money for the IRGC. In July 2026 the United States added nine additional firms linked to Zanjani in Turkey, the United Arab Emirates and Iran to its sanctions list. Operation Economic Outcast, launched the previous month, seeks to isolate Iran economically by targeting illicit oil trade, financial intermediaries, exchange houses, shipping, aviation and front companies.
Timeline of Recent Sanctions
- January 2026 – Treasury sanctions Zedcex and Zedxion exchanges for IRGC money-laundering.
- July 2026 – Sanctions imposed on nine firms tied to Zanjani across Turkey, the UAE and Iran.
- September 2026 (Thursday) – OFAC designates BitBank, its developer Pishtaz Simorgh Electronic Trade Company, and three Zanjani associates (Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, Seyed Adel Heidari).
- August 24 2026 – Treasury Secretary Scott Bessent outlines the new sanctions, stating, “Today’s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach.”
Data & Statistics
- Financial flow: “Hundreds of millions of dollars” moved from BitBank to the IRGC, according to the Treasury.
- Entities sanctioned: BitBank; Pishtaz Simorgh Electronic Trade Company; three close associates of Zanjani.
Official Statements & Responses
The Treasury warned U.S. persons that transacting with the designated parties could face civil and criminal liability, and that non-U.S. persons could be subject to secondary sanctions for material support. It noted that the exchange facilitated payments to the Hormuz Safe Marine Services Authority, enabling ships to pay for safe passage through the Strait of Hormuz using cryptocurrency.
Verbatim Quotes
- “Today’s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach,” — Treasury Secretary
Why It Matters / Impact
Targeting a platform that channels cryptocurrency payments for maritime services closes a loophole that allowed Iran to bypass traditional banking restrictions. The move expands sanctions from oil and shipping firms to the underlying crypto infrastructure, limiting Iran’s ability to fund the IRGC through decentralized channels and signaling tighter compliance expectations for international exchanges and wallet providers.
What’s Next
U.S. officials indicated that the Treasury will continue to target additional components of Iran’s digital-asset ecosystem. Treasury Secretary Bessent is scheduled to meet Chinese Vice Premier He Lifeng later in the week, and Iranian officials, including President Masoud Pezeshkian, are slated to attend the United Nations General Assembly in New York later this month, where travel restrictions on the delegation have been announced.