Treasury Sanctions BitBank Over Iranian Crypto Sanctions-Evasion Network

TL;DR

• U.S. Treasury has sanctioned Iranian digital asset exchange BitBank.
• OFAC says the platform was part of a network tied to sanctioned financier Babak Zanjani.
• Treasury alleges the infrastructure helped move hundreds of millions of dollars in Bitcoin connected to the IRGC.

The U.S. Treasury has targeted another part of Iran’s crypto infrastructure, this time placing digital asset exchange BitBank under sanctions.

The Office of Foreign Assets Control designated BitBank as part of what Treasury describes as a sanctions-evasion network tied to Iranian financier Babak Zanjani.

Treasury also sanctioned BitBank developer Pishtaz Simorgh Electronic Trade Company and several individuals linked to Zanjani’s wider business network.

The allegations are substantial.

OFAC says Zanjani used BitBank between June and July to facilitate the movement of hundreds of millions of dollars’ worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps.

Those are U.S. government allegations underlying the sanctions designation, not a criminal conviction.

The action is part of a broader Treasury campaign against Iran-linked financial infrastructure.

In previous enforcement rounds, OFAC has targeted banks, exchanges, facilitators and digital asset businesses it says help sanctioned actors move money outside conventional banking channels.

BitBank is particularly interesting because Treasury is not simply tracing one wallet or identifying a handful of addresses.

It is sanctioning an operating digital asset business and the software company behind it.

That suggests U.S. enforcement is increasingly treating crypto infrastructure in much the same way it treats banks, payment processors or front companies when officials believe the underlying business is being used to circumvent sanctions.

For exchanges and institutional crypto firms, the practical impact extends beyond BitBank itself.

Once OFAC designates an entity, U.S. persons are generally prohibited from dealing with it, while compliance systems around the world begin screening connected entities, addresses and counterparties.

That can quickly turn a Treasury announcement into a much wider operational issue.

The crypto industry has spent years building blockchain analytics and wallet-screening systems partly for situations like this.

Public ledgers make movements traceable in a way cash often is not, but traceability does not remove the need for sanctions controls.

If anything, Treasury’s recent activity shows that the government increasingly expects crypto businesses to treat digital asset sanctions risk as part of ordinary financial compliance.

Source: U.S. Department of the Treasury / OFAC — https://home.treasury.gov/news/press-releases/sb0632

This article was written by the News Desk and edited by Samuel Rae.

This report is based on information released by Home. at Home