The United States has expanded its sanctions campaign against Iran to include BitBank, a cryptocurrency exchange controlled by Iranian financier Babak Zanjani, accusing the platform of helping Tehran move hundreds of millions of dollars and evade international financial restrictions.
The US Treasury Department announced the sanctions on Thursday, September 17, as part of its broader “Operation Economic Outcast”, an initiative aimed at restricting Iran’s access to international financial, commercial and logistical networks.
According to Treasury, BitBank was used to process payments connected to Iran’s newly established Hormuz Safe Marine Services Authority, a body that Washington says was created to generate revenue from vessels seeking safe passage through the Strait of Hormuz.
Treasury alleged that BitBank processed hundreds of millions of dollars in payments associated with the maritime scheme and subsequently routed funds to Iran’s Islamic Revolutionary Guard Corps.
The department described the cryptocurrency exchange as a significant component of what it called Iran’s digital-asset-based sanctions-evasion infrastructure.
The latest action also targeted Pishtaz Simorgh Electronic Trade Company, identified by Treasury as the software developer behind BitBank, as well as three individuals described as associates of Zanjani.
The three individuals are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
Zanjani at centre of sanctions network
Zanjani has previously been targeted by Washington over allegations that he helped Iran circumvent international sanctions.
He was sentenced to death by Iranian authorities in 2016 after being convicted of embezzlement. His sentence was later commuted in 2024, and he subsequently returned to public attention as a financier involved in Iranian economic projects.
In January, the US Treasury sanctioned Zanjani and two major digital-asset projects associated with him, Zedcex Exchange Limited and Zedxion Exchange Limited, accusing the businesses of facilitating money laundering and supporting the IRGC.
Washington expanded its action against his wider business network in July, sanctioning nine additional companies and four individuals connected to his operations in Iran, Turkey and the United Arab Emirates.
Treasury said Zanjani’s enterprises have operated both as conventional commercial businesses and as financial channels that can be used to move money covertly.
The department has increasingly focused on cryptocurrency as part of its efforts to restrict Iran’s ability to access international finance.
Strait of Hormuz becomes a financial target
The latest sanctions also highlight the growing importance of the Strait of Hormuz in the economic confrontation between Washington and Tehran.
The strategic waterway is a major route for global energy shipments. US authorities have accused Iranian-linked entities of establishing maritime services that require vessels passing through the strait to make payments for insurance and other services.
Treasury previously sanctioned the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority in July, describing the arrangement as an IRGC-backed scheme designed to generate revenue from commercial shipping.
According to the department, Hormuz Safe accepts Bitcoin and other digital assets as payment, allowing the organisation to operate outside conventional banking channels.
Washington has therefore increasingly treated digital assets as part of the wider infrastructure through which Iran can generate revenue and circumvent sanctions.
In August, Treasury formally expanded the categories of Iran-related economic activity exposed to US sanctions to include digital assets, technology, gold, aviation and shipping.
The department said the Iranian government was increasingly turning to cryptocurrency to facilitate transactions involving the IRGC and other state-linked actors.
Wider pressure on crypto platforms
The BitBank designation comes as US authorities intensify scrutiny of cryptocurrency exchanges that have connections to Iran.
The Office of Foreign Assets Control has warned that sanctions risks can extend beyond the Iranian companies directly designated by Washington. Foreign financial institutions and other non-US entities conducting significant transactions with sanctioned Iranian digital-asset exchanges can also face sanctions exposure under US law.
The latest move consequently sends a warning beyond BitBank itself to other cryptocurrency businesses, financial institutions and intermediaries that may facilitate transactions involving sanctioned Iranian entities.
For Tehran, the measures could make it more difficult to use digital assets as an alternative channel for international payments.
For Washington, the sanctions represent another component of its broader campaign to restrict Iran’s ability to finance state-linked activities and maintain access to international markets.
The action also demonstrates how the US-Iran confrontation is increasingly extending into the digital financial system, with cryptocurrency exchanges, blockchain-based payment networks and maritime transactions becoming part of the wider sanctions battle.
