US sanctions Iran’s BitBank, saying it processes ‘Hormuz Safe’ Bitcoin payments
US Treasury says the Iranian exchange processed payments received through Iran’s Strait of Hormuz maritime scheme and helped move hundreds of millions of dollars in Bitcoin to the IRGC.
On Thursday, the US Treasury announced sanctions against the Iranian crypto exchange BitBank, accusing it of processing Bitcoin payments received through Iran's Strait of Hormuz maritime scheme. The sanctions allege that BitBank, along with its developer Pishtaz Simorgh Electronic Trade Company and three associates of Iranian financier Babak Zanjani, have been instrumental in moving hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC).
The Treasury claims that BitBank has played a crucial role in the architecture used to facilitate these transactions, which are part of a broader scheme allegedly orchestrated by the IRGC.
The US Treasury has previously accused the Hormuz Safe Marine Services Authority, a key player in the maritime scheme, of using BitBank to transfer payments to the IRGC. The scheme allegedly forces vessels to purchase maritime insurance for passage, including coverage against seizures by Iran itself. US Treasury Secretary Scott Bessent emphasized that the sanctions against BitBank highlight the Treasury's ability to target efforts to finance the Iranian regime using cryptocurrencies.
The designation of BitBank and its associates is the latest action by the US Treasury to isolate Iran from the international financial system. The Office of Foreign Assets Control (OFAC) has implemented a series of sanctions targeting digital asset exchanges, including bitbank, inc, a licensed crypto exchange in Japan, and other entities allegedly involved in sanctions evasion.
This designation follows similar actions taken against other crypto exchanges, such as Shelbit, Aban Tether, and Nobitex, all accused of aiding the Iranian regime in evading sanctions.
In response to the sanctions, Iran has reportedly sought to mitigate the impact of tightening financial restrictions. The Financial Times reported that Iran's central bank eased foreign currency controls earlier in the month, encouraging businesses to bring overseas earnings home, including through cryptocurrency, despite the tightening US sanctions.
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