Key Highlights
- The U.S. Treasury Department sanctioned Iranian crypto exchange BitBank, its developer Pishtaz Simorgh Electronic Trade Company, and four individuals linked to financier Babak Zanjani for moving hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps.
- The designations were announced under “Operation Economic Outcast” and target a network that operated between June and July to evade U.S. sanctions on the Iranian regime.
- Treasury Secretary Scott Bessent declared that cryptocurrency will not shield those supporting the Iranian government, stating: “If you support the Iranian regime, the Department of the Treasury will sanction you.”
Treasury Targets Iranian Crypto Network in Sanctions Sweep
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has levied sanctions against BitBank, an Iranian digital-asset exchange, and a constellation of associated entities and individuals accused of facilitating sanctions evasion on behalf of the Iranian government. The action, unveiled as part of the Treasury’s “Operation Economic Outcast,” underscores the administration’s escalating focus on cryptocurrency as a vehicle for illicit state financing.
BitBank and the Zanjani Connection
According to OFAC, BitBank has marketed itself as an Iranian digital-asset exchange since at least 2024. The platform’s software was developed by Pishtaz Simorgh Electronic Trade Company, a subsidiary of Dot One, which was also designated in the sweep. The agency alleges that Iranian financier Babak Zanjani utilized BitBank between June and July to transfer hundreds of millions of dollars worth of Bitcoin. The Treasury asserts these funds were ultimately channeled to Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, as part of a deliberate effort to circumvent U.S. economic restrictions.
Individual Designations and Corporate Ties
Beyond the exchange and its developer, OFAC sanctioned three individuals identified as key operators within the network: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. The designations freeze any assets these targets hold under U.S. jurisdiction and generally prohibit American persons from engaging in transactions with them. The restrictions also extend to any entities owned 50% or more by the blocked individuals or entities, creating a broad compliance net for financial institutions and crypto service providers.
Bessent Warns Crypto Offers No Safe Harbor
Treasury Secretary Scott Bessent delivered a pointed message regarding the role of digital assets in sanctions evasion. He emphasized that the use of cryptocurrency would not insulate actors supporting the Iranian regime from U.S. enforcement.
“If you support the Iranian regime, the Department of the Treasury will sanction you.”
The statement signals a hardening posture toward the intersection of crypto finance and state-sponsored illicit finance, putting exchanges, developers, and intermediaries on notice that technical innovation does not confer legal immunity.
Why This Matters
The designations represent a significant escalation in the U.S. strategy to disrupt the financial pipelines of the Islamic Revolutionary Guard Corps. By targeting the technical infrastructure—specifically the exchange software developer Pishtaz Simorgh—alongside the operators, the Treasury is attacking the “on-ramps” and “off-ramps” that allow sanctioned actors to convert crypto into usable fiat currency. This move aligns with a broader global regulatory trend, including Financial Action Task Force (FATF) guidelines, demanding that virtual asset service providers implement the same Know Your Customer (KYC) and Anti-Money Laundering (AML) controls as traditional banks. For the crypto industry, the action serves as a stark reminder that jurisdictional boundaries are porous when U.S. sanctions are involved, and that “decentralized” technology does not prevent centralized enforcement against identifiable corporate entities and developers.
Frequently Asked Questions
What specific activities triggered the sanctions on BitBank?
OFAC alleges that BitBank was used by Iranian financier Babak Zanjani between June and July to move hundreds of millions of dollars in Bitcoin, with the funds ultimately reaching the Islamic Revolutionary Guard Corps (IRGC) to bypass U.S. sanctions.
Who else was sanctioned besides the exchange?
The Treasury designated BitBank’s developer, Pishtaz Simorgh Electronic Trade Company (a subsidiary of Dot One), and three individuals: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
What are the practical consequences for U.S. persons and businesses?
U.S. persons are required to block any property or interests in property of the sanctioned targets that come under their control. Transactions with designated entities are generally prohibited unless authorized by a specific OFAC license. Violations can result in severe civil monetary penalties or criminal prosecution.
