Treasury Sanctions BitBank Exchange Behind Iran's Bitcoin Hormuz Tolls
Key Points
- Treasury's OFAC designated BitBank on September 18, 2026, for moving hundreds of millions of dollars in Bitcoin to the IRGC between June and July.
- BitBank is controlled by Babak Zanjani, an Iranian financier previously designated by OFAC in January who was sentenced to death in Iran in 2016 for embezzling from the National Iranian Oil Company.
- The Hormuz Safe Marine Services Authority has routed Bitcoin payments from shipping companies through BitBank to the Iranian regime since June 2026.
Beyond BitBank itself, OFAC designated four additional entities and individuals on September 18: Pishtaz Simorgh Electronic Trade Company, which built BitBank's software and operates as a subsidiary of the already-designated Dot One Value Creation Group, plus three Dot One executives—Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Treasury described Hossein Ali Zaker Hossein as involved in most of Zanjani's sanctions evasion activities, including oil exports, and noted he has brokered digital asset transactions that ended up with the IRGC.
All five were designated under Executive Order 13902, which the administration extended in August to cover anyone operating in Iran's digital asset sector. This order now serves as OFAC's primary tool for targeting the network of cryptocurrency exchanges used to launder Iranian funds. U.S. assets belonging to the designated individuals and entities are blocked, and non-U.S. firms conducting business with them face secondary sanctions risk.
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The designations fall under Operation Economic Outcast, the broader campaign Bessent announced on August 24 and dubbed "Economic D-Day," which Treasury says aims to sever Iran's remaining economic lifelines with assistance from the European Union, the United Kingdom, and Gulf partners. Zanjani has been advertising BitBank on his social media accounts since at least 2024, providing Treasury with public evidence of his involvement in the exchange.
Market observers are skeptical conditions will ease soon. Prediction markets tracked by Myriad show odds of Washington announcing an end to its naval blockade of Iranian shipping by September 30 have fallen to 10 percent, down 30 points from earlier assessments. Even a December 31 deadline for lifting the blockade carries only a 60 percent probability according to prediction market data.
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This action marks the latest enforcement step against Iran's cryptocurrency infrastructure at a time when the regime has turned to digital assets to circumvent traditional sanctions. The designation of BitBank and its associated network demonstrates OFAC's expanding reach into the sector—a concern for any financial intermediary handling Iranian digital asset transactions, whether knowingly or inadvertently.
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Market Outlook
Treasury is likely to continue designating cryptocurrency exchanges and digital asset intermediaries linked to Iran's sanctions evasion network through Operation Economic Outcast. Market prediction data suggests low probability of blockade relief before year-end 2026, indicating extended enforcement pressure. Secondary sanctions against non-U.S. entities dealing with designated parties could fragment Iran's remaining crypto infrastructure access.
Sources: Decrypt and other international news outlets.
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