Treasury also designated BitBank’s software developer and three associates of financier Babak Zanjani, citing a sanctions-evasion network; the allegations are government claims, not a court finding.
The U.S. Treasury Department’s Office of Foreign Assets Control designated Iranian crypto exchange BitBank on Thursday, alleging that the platform helped move hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps. Treasury’s press release and OFAC’s Specially Designated Nationals update name BitBank, its software developer Pishtaz Simorgh Electronic Trade Company and three associates of Iranian financier Babak Zanjani. The Block and Al-Monitor independently reported the action.
Treasury said the designations were part of Operation Economic Outcast and described BitBank as a priority digital-assets venture controlled by Zanjani, who was already sanctioned. The department also alleged that BitBank was used to transfer payments collected by Hormuz Safe, an Iranian maritime-insurance scheme, to the Iranian regime.
These are allegations by the U.S. government. A sanctions designation is not a criminal conviction. It identifies parties subject to U.S. blocking measures and related restrictions; it does not by itself resolve every factual dispute or establish liability in court.
What the designation changes
U.S. persons generally must block property and property interests of designated parties that come within their possession or control and avoid transactions involving them unless authorized by OFAC. Non-U.S. firms can also face exposure in certain circumstances, including dealings that trigger secondary-sanctions authorities or involve the U.S. financial system.
The action reaches beyond an exchange brand. Pishtaz Simorgh, which Treasury identified as BitBank’s software developer, was designated alongside three executives or associates linked to Zanjani’s network. That structure reflects how sanctions investigators can target the platform, its code provider and key operators at the same time.
For compliance teams, the practical work includes updating screening systems, reviewing historical counterparties and tracing wallet addresses associated with the named entities. Blockchain analytics can help identify flows, but attribution still depends on exchange records, corporate documents and other evidence. A wallet label alone is not proof of ownership or intent.
Crypto’s traceability is part of the enforcement story
Treasury’s announcement underscores a recurring tension in digital-asset enforcement. Bitcoin transfers can move across borders quickly, but the public ledger preserves transaction history that investigators can combine with customer records and sanctions intelligence. The technology can therefore provide both a route for evasion and a source of evidence.
The designation also arrives after the Justice Department’s separate forfeiture complaint over crypto allegedly tied to Iranian oil sales. Together, the cases show authorities using sanctions, civil forfeiture and financial intelligence in parallel rather than treating crypto as a standalone enforcement category.
The next evidence will be any response from BitBank or the named individuals, new blocking actions, and guidance on wind-down or licensing issues. A sanctions label changes access, not the facts. Firms should follow OFAC’s official notices and obtain qualified legal advice before interpreting obligations for specific transactions.
