OFAC alleges that Zanjani, a prominent Iranian businessman with prior sanctions
The U. S. Treasury Department has sanctioned BitBank, an Iranian cryptocurrency exchange controlled by financier Babak Zanjani, for facilitating hundreds of millions of dollars in Bitcoin transfers to Iran's Islamic Revolutionary Guard Corps between June and July. The exchange was used by Iran's Hormuz Strait toll authority to route payments for maritime traffic, according to OFAC. BitBank has been designated under executive orders targeting Iran's financial networks and support for militant groups. Treasury officials say the sanctions aim to disrupt illicit funding channels that enable the IRGC's regional activities and evade international restrictions. How BitBank Enabled Covert Bitcoin Flows to the IRGC BitBank processed large volumes of Bitcoin on behalf of the Hormuz toll authority, which collects fees from ships passing through the strategic Strait of Hormuz.
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Binance Expands Margin Collateral Options with New Equity-Linked TokensOFAC alleges that Zanjani, a prominent Iranian businessman with prior sanctions history, directed the exchange to convert toll revenues into Bitcoin and transfer them to IRGC-linked accounts. The movement of funds occurred over a two-month window in mid-2023, leveraging cryptocurrency's relative anonymity to bypass traditional banking surveillance. Treasury noted that the exchange operated with minimal oversight, allowing rapid conversion and transfer of digital assets. The designation freezes any U. S.-linked assets of BitBank and prohibits Americans from engaging with the platform. What Measures Are Being Taken to Counter Crypto-Based Evasion Tactics U. S. authorities are increasing monitoring of digital asset flows tied to sanctioned Iranian entities, particularly those exploiting cryptocurrency for sanctions evasion. The action against BitBank reflects a broader effort to close loopholes that allow state-linked actors to access global finance through decentralized tools. Treasury has warned that other exchanges facilitating similar transfers may face similar consequences.
Analysts say the case underscores the growing role of crypto in illicit finance
Analysts say the case underscores the growing role of crypto in illicit finance, prompting calls for stronger international coordination on virtual asset regulation. The sanctions also serve as a deterrent to financial intermediaries considering involvement in high-risk jurisdictions. Frequently Asked Questions Who is Babak Zanjani and why is he significant in this case? Babak Zanjani is an Iranian financier previously sanctioned by the U. S. and EU for alleged involvement in oil smuggling and sanctions evasion. He controls BitBank and is accused of directing its use to move funds to the IRGC. Why did the Hormuz toll authority use Bitcoin for its payments? The authority turned to Bitcoin to bypass traditional financial systems blocked by U. S. sanctions, using cryptocurrency to convert toll revenue into a transferable asset less susceptible to interception. What impact will the sanctions have on BitBank's operations? The sanctions freeze any BitBank assets under U.
S. jurisdiction and prohibit U. S. persons from transacting with the exchange, effectively cutting it off from dollar-based systems and global crypto markets linked to U. S. compliance.
