The U.S. Treasury Department’s Office of Foreign Assets Control imposed sanctions on Iranian crypto exchange BitBank, its software developer and three individuals linked to previously sanctioned businessman Babak Zanjani. OFAC said Zanjani used the platform from June to July 2026 to transfer hundreds of millions of dollars’ worth of bitcoin to the Islamic Revolutionary Guard Corps, or IRGC.

According to the Treasury, Zanjani controls BitBank. The restrictions also targeted the exchange’s software developer, Pishtaz Simorgh Electronic Trade Company.

OFAC also said the sanctioned Hormuz Safe Marine Services Authority had routed payments through BitBank since June that U.S. authorities said were intended for Iranian state entities.

The Treasury described BitBank as part of an infrastructure that Zanjani created to move capital and evade restrictions. According to the agency, his network combined publicly operating commercial projects and financial platforms that were allegedly used to launder funds and support state-linked organizations.

“Today’s sanctions on Iran’s digital asset infrastructure make clear that attempts to finance Iran using cryptocurrencies are not beyond OFAC’s reach,” U.S. Treasury Secretary Scott Bessent said.

OFAC designated BitBank and Pishtaz Simorgh under Executive Order 13902, which the Treasury said also applies to Iran’s digital-asset sector. U.S. authorities warned that foreign companies and other market participants could face sanctions risks if they help evade restrictions through cryptocurrencies.

Assets belonging to sanctioned people and organizations that are in the United States or under the control of U.S. persons are subject to blocking. The same restrictions apply to entities owned 50% or more, directly or indirectly, by one or more sanctioned parties.

Operation Economic Outcast

The restrictions were part of Operation Economic Outcast, which the Treasury announced on Aug. 24, 2026. U.S. authorities expanded sanctions pressure on Iran-linked entities through the operation, including measures targeting the cryptoasset sector. OFAC took action against 60 organizations, individuals and vessels.

In early August, OFAC also initiated sanctions against crypto exchanges Shelbit and Aban Tether. U.S. authorities linked the platforms to sanctions-evasion schemes and IRGC financial flows.

On Sept. 15, the U.S. Department of Justice sought to seize about $61 million in cryptocurrency that authorities tied to sales of sanctioned Iranian oil. Investigators alleged that entities involved in the transactions converted the proceeds into digital assets. Case materials also referred to organizations linked to the IRGC.

Zanjani’s name had previously appeared in a Wall Street Journal investigation. The newspaper reported in May 2026 that his network may have routed roughly $850 million in transactions through Binance over two years. Binance rejected allegations that it had helped evade sanctions and said its compliance procedures were effective.

Source: Incrypted