Treasury Sanctions Crypto Exchange Behind Iran's Bitcoin Tolls on Hormuz Ships

The United States imposed sanctions on an Iranian cryptocurrency exchange, BitBank, operated by sanctioned Iranian financier Babak Zanjani, stating it facilitated payments for ships to pass safely through the Strait of Hormuz. Treasury described BitBank as a crucial element in Iran's digital assets-based infrastructure to circumvent sanctions, used to transfer funds to the Islamic Revolutionary Guard Corps' Hormuz Safe Marine Services Authority.

Zanjani, sentenced to death in 2016 for embezzlement but whose sentence was commuted in 2024, re-emerged as a supporter of Iranian government economic projects. This designation is part of Treasury's "Operation Economic Outcast," targeting Iran economically and disrupting its global financial, commercial, and logistical networks.

The sanctions also encompassed Pishtaz Simorgh Electronic Trade Company, the software developer behind BitBank, and three associates of Zanjani. Previously, Zanjani was sanctioned for laundering money for the Islamic Revolutionary Guard Corps, as well as for his roles in Zedcex Exchange Limited and Zedxion Exchange Limited. In July, the US imposed sanctions on nine other firms associated with Zanjani, including his Iran-based Dot One conglomerate and entities in Turkey and the UAE, along with their top executives.