US Sanctions Iranian Crypto Exchange BitBank and Its Software Developer Over Alleged IRGC Transfers

The United States has imposed sanctions on Iranian cryptocurrency exchange BitBank, its software developer and three individuals linked to Iranian financier Babak Zanjani, alleging that the network facilitated the movement of hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC).

The designations were announced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) on 17 September 2026 under Executive Order 13902, which provides sanctions authority targeting Iran's economy, including its digital asset sector. The action forms part of Operation Economic Outcast, a US campaign targeting Iranian financial and commercial networks.

BitBank was identified by Treasury as an Iranian digital asset exchange controlled by Zanjani, who was previously designated by OFAC. Treasury alleges that Zanjani used BitBank between June and July 2026 to facilitate the transfer of hundreds of millions of dollars worth of Bitcoin to the IRGC.

OFAC also designated Pishtaz Simorgh Electronic Trade Company, which Treasury identified as the developer of BitBank's digital asset software. Pishtaz Simorgh is described as a subsidiary of Dot One Value Creation Group, another entity previously designated by OFAC in connection with Zanjani's network.

Three individuals were designated alongside the companies: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. Treasury described the three as executives or senior figures within Zanjani's wider Dot One network.

Treasury alleges that Hossein Ali Zaker Hossein was involved in sanctions-evasion activity associated with Zanjani, including the export of Iranian oil and digital asset transfers. OFAC further alleges that he brokered digital asset transactions that ultimately reached the IRGC.

Mohammad Mahdi Zaker Hossein was identified as the head of Pishtaz Simorgh, while Seyed Adel Heidari was identified as a senior figure within Dot One. The designations therefore cover the exchange itself, the company responsible for its software and individuals connected with the wider corporate structure.

The US Treasury also linked BitBank to Hormuz Safe Marine Services Authority, an Iranian entity that had previously been designated by OFAC. According to Treasury, Hormuz Safe has used BitBank since June 2026 to transfer payments it received to the Iranian regime.

Hormuz Safe has been associated with a digital payment platform connected with maritime traffic through the Strait of Hormuz. The US government alleges that payments collected through the platform were subsequently transferred through BitBank. The transactions therefore form part of the wider sanctions allegations surrounding the Iranian financial and maritime networks targeted by OFAC.

The BitBank designation follows earlier US sanctions against other Iranian cryptocurrency businesses linked to Zanjani. On 30 January 2026, OFAC designated Zanjani, Zedcex and Zedxion. Further designations were issued in July against additional entities and individuals associated with the network.

Treasury has described Zanjani as an Iranian financier who was previously sentenced to death in Iran in connection with the embezzlement of funds from the National Iranian Oil Company. His sentence was commuted in 2024, and Treasury states that he subsequently re-emerged publicly as a backer of Iranian economic projects.

The US government alleges that Zanjani subsequently developed a network of digital asset companies and other businesses that could be used for sanctions evasion and the movement of funds. Treasury has described the network as incorporating both publicly presented commercial businesses and financial infrastructure that it says supported Iranian state-linked entities.

The latest action also illustrates the scope of the US sanctions authority being applied to Iran's digital asset sector. Executive Order 13902 permits OFAC to designate persons operating in specified sectors of the Iranian economy, including activities involving digital assets. Treasury stated that the authority allows it to target both Iranian digital asset infrastructure and foreign actors that facilitate the relevant activities.

The sanctions have direct consequences for property and transactions subject to US jurisdiction. Property and interests in property of designated persons that are in the United States or in the possession or control of US persons are generally blocked. US persons are generally prohibited from engaging in transactions involving blocked property or designated persons unless authorised by OFAC.

The designations can also create sanctions exposure for non-US financial institutions and other businesses. Transactions involving designated Iranian entities may create risks under applicable US secondary sanctions authorities, depending on the nature and significance of the activity and the relevant statutory and executive authorities.

BitBank is distinct from the Japanese cryptocurrency exchange bitbank, Inc. The US sanctions action concerns the Iranian digital asset exchange identified by OFAC as BitBank and associated with Zanjani's network.

The latest designations form part of a series of US actions targeting Iranian cryptocurrency infrastructure during 2026. Earlier sanctions targeted Nobitex, Wallex, Bitpin and Ramzinex in June, followed by sanctions against additional Iranian exchanges in August. The measures have focused on cryptocurrency platforms and related infrastructure that US authorities allege have been used to facilitate sanctions evasion or transfers involving Iranian state-linked entities.

Treasury's allegations concerning BitBank and the individuals designated in September relate to sanctions evasion and the movement of digital assets to Iranian entities. The designations themselves are administrative sanctions measures and do not constitute criminal convictions against the designated persons. The allegations made by US authorities concerning the underlying transactions have not been established through a criminal trial.

The September action expands the sanctions designation of Zanjani's network to another cryptocurrency exchange and its supporting technology provider, while also identifying individuals associated with the exchange's ownership, development and wider corporate structure.

By fLEXI tEAM