The U.S. Treasury imposed sanctions on September 17 against BitBank, an Iranian asset exchange that the department alleged facilitated hundreds of millions of dollars in Bitcoin transfers to the Islamic Revolutionary Guard Corps (IRGC).

The Office of Foreign Assets Control (OFAC) added BitBank to its Specially Designated Nationals (SDN) list under Executive Order 13902. Treasury said the order covers Iran’s digital asset sector and other parts of its economy, and is used against networks it says support sanctions evasion.

The action also designated BitBank’s software developer, Pishtaz Simorgh Electronic Trade Company, along with three associates linked to Iranian financier Babak Zanjani. Treasury connected the designations to Operation Economic Outcast, its broader sanctions campaign against Iranian financial networks.

Treasury Alleges Bitcoin Transfers to the IRGC

Treasury described BitBank as an Iranian digital asset exchange controlled by Babak Zanjani. OFAC previously sanctioned Zanjani and entities connected to his business network. Treasury said Zanjani had promoted BitBank since at least 2024.

Between June and July 2026, Zanjani allegedly used BitBank to conduct Bitcoin transfers totaling hundreds of millions of dollars. Treasury said the funds ultimately went to the IRGC and that the exchange supported payments connected to sanctioned Iranian entities.

The department also linked BitBank to payments involving the Hormuz Safe Marine Services Authority, which OFAC had designated before the latest action. Treasury said that, since June, the authority had used BitBank to transfer payments to Iran.

Treasury Secretary Scott Bessent said cryptocurrency-based financing was not beyond OFAC’s enforcement reach. He added that the department would sanction parties supporting the Iranian government. His statement accompanied the September 17 designations.

Today’s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach. If you support the Iranian regime, the Department of the Treasury will sanction you. — Treasury Secretary Scott Bessent (@SecScottBessent) September 17, 2026

The sanctions expand a series of Iran-related actions involving digital asset exchanges and facilitators. OFAC has warned that certain non-U.S. parties may face additional sanctions exposure for dealings with designated Iranian exchanges. In this case, the designations span digital asset channels and individuals Treasury tied to oil-related evasion, placing crypto infrastructure within the same enforcement campaign as Iran’s traditional financial networks.

Developer and Zanjani Associates Added to SDN List

OFAC also sanctioned Pishtaz Simorgh Electronic Trade Company, which Treasury identified as BitBank’s software developer. Treasury said Pishtaz Simorgh is a subsidiary of Dot One Value Creation Group, which OFAC had previously designated. Extending the action to the exchange’s software developer signals that Treasury counts technical service providers as part of a designated exchange’s network, consistent with Bessent’s description of the designations as targeting “Iranian digital asset infrastructure.”

The three individuals added in the same action were Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Treasury described all three as executives within Zanjani’s Dot One network.

According to Treasury, Hossein Ali Zaker Hossein participated in sanctions-evasion activity involving oil exports and digital assets. The department also alleged that he brokered digital asset transactions that ultimately reached the IRGC.

Mohammad Mahdi Zaker Hossein serves as a manager and representative of Dot One and is the chief executive of Pishtaz Simorgh, Treasury said. Seyed Adel Heidari serves as vice chairman of Dot One’s board.

Treasury Sec Scott Bessent just SANCTIONED a massive crypto exchange fueling the Iranian regime! BitBank and its developers got hit hard under Trump’s EO 13902. Use crypto to finance terror? Get shut down. America First economic strength in action! — Ryan Fournier (@RyanAFournier) September 17, 2026

Effect of the BitBank Sanctions

The designations block property and interests in property held in the United States, as well as property controlled by U.S. persons. Entities owned 50% or more by blocked persons are also blocked under OFAC rules.

U.S. persons generally may not transact with designated parties without authorization or an applicable exemption. Treasury said violations can result in civil or criminal penalties. Certain non-U.S. persons may also face sanctions exposure for conduct involving designated parties.

The OFAC SDN entry identifies BitBank as a Tehran-based financial and insurance entity established in 2024. The entry also flags the exchange for potential exposure to secondary sanctions under Iran-related authorities.

OFAC sanctions rules restrict the provision or receipt of funds, goods, or services involving blocked persons. Treasury said enforcement can generally apply when transactions involve designated entities either directly or through companies they control. With Treasury framing the move as part of the ongoing Operation Economic Outcast campaign and Bessent warning that sanctions will reach any party supporting the Iranian government, further designations touching Iran’s digital asset sector are the most direct signal for observers to monitor.

Source: Blockonomi