U.S. Sanctioned Iranian Crypto Exchange BitBank
The Treasury targeted the digital asset firm for allegedly laundering funds for the Islamic Revolutionary Guard Corps.
Updated on Sept. 18, 2026 in Financial Crime
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The U.S. Department of the Treasury has sanctioned the Iranian crypto exchange BitBank along with its software developer. The agency claims the platform laundered funds to help Iran evade sanctions.
Why it matters
Officials allege the exchange facilitated hundreds of millions of dollars in bitcoin transfers to the Islamic Revolutionary Guard Corps to bypass international financial restrictions.
The U.S. Treasury has imposed formal sanctions on BitBank, its software developer, and three associates of Babak Zanjani. The investigation into the exchange's role in processing payments to Tehran is ongoing.
The players
U.S. Department of the Treasury
This federal agency is responsible for overseeing the financial system and enforcing economic sanctions against foreign threats.
Islamic Revolutionary Guard Corps
This is a branch of the Iranian Armed Forces that has been designated as a terrorist organization by the United States.
Babak Zanjani
He is a prominent Iranian businessman previously convicted for his role in large-scale financial corruption and sanctions evasion schemes.
BitBank
This Iran-based cryptocurrency exchange functioned as a platform for transferring digital assets outside of international oversight.
Hormuz Safe Marine Services Authority
This entity is an organization reportedly involved in maritime shipping activities that utilized illicit financial channels for payments to Tehran.
The details
BitBank, a digital asset venture controlled by Babak Zanjani, allegedly assisted the Hormuz Safe Marine Services Authority in sending payments to Tehran since June. These transactions helped the Islamic Revolutionary Guard Corps move significant capital outside of traditional banking systems.
Timeline
The Hormuz Safe Marine Services Authority began using BitBank in June 2026.
BitBank allegedly transferred bitcoin to the IRGC throughout the summer of 2026.
The U.S. Treasury officially sanctioned BitBank on September 17, 2026.
Legal Context
The action follows the established enforcement protocols within the U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctions framework. This move reflects a broader trend of regulators targeting decentralized assets used to circumvent international financial restrictions.
These sanctions effectively cut the exchange off from the U.S. financial system and prohibit American citizens from conducting business with the entity. The move serves as a warning for organizations and individuals that use digital assets to bypass global regulatory requirements.
The takeaway
The use of cryptocurrency to evade international sanctions remains a major focal point for global financial authorities. Users of digital asset platforms should be aware that platforms facilitating illicit state-level transfers are increasingly likely to face severe regulatory disruption.
Further reading
For more information on how regulators monitor illicit digital assets, visit our Financial Crime section.
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Do you believe U.S. sanctions on cryptocurrency exchanges effectively stop regimes from financing illicit activities?
