US Sanctions Iranian Crypto Exchange BitBank, Developer

The U.S. Treasury Department’s Office of Foreign Assets Control on Sept. 17 designated Iranian cryptocurrency exchange BitBank and its software developer Pishtaz Simorgh, saying financier Babak Zanjani used the platform between June and July to transfer hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps.

Treasury also named Hormuz Safe Marine Services Authority, previously sanctioned over an alleged maritime-payment scheme in the Strait of Hormuz, saying the entity used BitBank from June to route receipts to the Iranian government. The action includes three individuals tied to Zanjani’s corporate network and applies authorities under Executive Order 13902, which Treasury has broadened to cover Iran’s digital-asset sector.

Treasury Secretary Scott Bessent said enforcement shows crypto-based financing is ‘not beyond OFAC’s reach’ and warned that parties supporting the Iranian government could face sanctions exposure. The department framed the designations as part of a wider campaign to disrupt networks that move oil revenue, evade sanctions and fund the IRGC.

The designations identify Pishtaz Simorgh as a subsidiary of Dot One Value Creation Group, a company Treasury sanctioned in July. Treasury described Dot One as part of a portfolio that includes financial services, digital assets, transportation and infrastructure that Zanjani used to obscure ownership and move funds. Officials said Zanjani publicly promoted BitBank beginning in at least 2024 and that several companies tied to his network listed the exchange as a partner.

Blockchain intelligence firm TRM Labs reported that the BitBank and Pishtaz Simorgh designations expand an investigation it began into other exchanges sanctioned with Zanjani earlier this year. TRM initially identified roughly $1 billion in IRGC-linked activity tied to those platforms and later mapped a wider ecosystem that included Dot One, ZedPay, transportation companies and other businesses targeted by Treasury. The firm said its analysis connected corporate ownership, payment flows and software development links that can link entities which appear separate on-chain.

Three individuals were named for roles in the network. Mohammad Mahdi Zaker Hossein, chief executive of Pishtaz Simorgh and a Dot One manager, was designated for acting on behalf of the software company. Seyed Adel Heidari, vice chairman of Dot One’s board, was designated for acting on behalf of Dot One. Hossein Ali Zaker Hossein was designated for acting on behalf of Babak Zanjani; Treasury alleges he participated in sanctions-evasion activities including Iranian oil exports and digital-asset transactions and brokered crypto transfers that reached the IRGC.

The Treasury action follows a series of prior sanctions on Iranian crypto platforms. In June and August, the department designated several exchanges and services as it broadened secondary-sanctions exposure for non-U.S. companies that continue business with listed Iranian entities. Treasury also launched Operation Economic Outcast on Aug. 24 to cut Iran off from financial channels used to evade sanctions and move revenue to state-linked actors.

Treasury officials said the recent designations extend enforcement beyond individual blockchain addresses to the corporate and technical infrastructure that enables transfers. By naming an exchange, its developer and senior figures in the corporate network, the department aims to identify business and software links that can facilitate sanctions evasion and to increase the range of entities subject to U.S. restrictions.