The U.S. Treasury Department has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform formed part of a sanctions-evasion network connected to financier Babak Zanjani.
The Treasury’s Office of Foreign Assets Control also designated BitBank’s developer, Pishtaz Simorgh Electronic Commerce Firm, along with other individuals linked to Zanjani’s broader business network. Treasury said the network helped move hundreds of millions of dollars in Bitcoin connected to Iran’s Islamic Revolutionary Guard Corps.
According to OFAC, Zanjani used BitBank between June and July to facilitate the transfers. The claims are part of the U.S. government’s sanctions action and do not represent a criminal conviction.
Crypto infrastructure targeted alongside financial entities
The designation reflects a wider U.S. effort to disrupt Iran-linked financial channels outside the traditional banking system. Previous enforcement actions have targeted banks, exchanges, facilitators and digital-asset businesses that officials say support sanctioned actors.
In BitBank’s case, the action extends beyond individual wallet addresses or isolated transactions. By sanctioning both an operating exchange and the technology company identified as its developer, OFAC is treating crypto infrastructure as a potential sanctions-evasion tool alongside banks, payment processors and front companies.
Implications for exchanges and compliance teams
U.S. persons are generally prohibited from transacting with entities designated by OFAC. The decision is also likely to prompt exchanges and institutional crypto firms to review counterparties, wallet addresses and related entities connected to BitBank and the wider network.
Blockchain transactions can be traced through public ledgers, but that visibility does not remove the need for sanctions screening and other compliance controls. The action underscores the growing expectation that digital-asset companies monitor sanctions exposure as part of their routine financial compliance programs.
