US Sanctions Iranian Crypto Exchange BitBank

Key Takeaways

• OFAC added Iranian exchange BitBank, its software developer and three individuals to its sanctions list on September 17.
• Treasury alleges that the exchange helped move hundreds of millions of dollars in bitcoin to the IRGC in June and July 2026.

Details

The US Treasury Department announced sanctions against Iranian cryptocurrency exchange BitBank on September 17, 2026, targeting a platform it says is controlled by previously sanctioned financier Babak Zanjani.

Treasury alleges that Zanjani used BitBank to transfer bitcoin worth hundreds of millions of dollars to Iran’s Islamic Revolutionary Guard Corps during June and July. It also said the already-sanctioned Hormuz Safe Marine Services Authority had used the exchange to transfer payments to the Iranian government since June.

The September 17 sanctions-list update identifies the exchange as BITBANK, also known as BITBANK3, with an address in Tehran. It also lists software developer Pishtaz Simorgh Electronic Trade Company and three individuals: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari. The entries carry Iran-related sanctions designations, including Executive Order 13902.

Under OFAC’s blocking rules, the property and property interests of blocked persons must be frozen when located in the United States or held or controlled by US persons. Ownership remains with the blocked person, while transfers and other dealings require OFAC authorization. The 50 Percent Rule also covers entities owned, directly or indirectly, at least 50% in aggregate by blocked persons.

Market Analysis

The action reaches beyond the exchange to its software developer and associated executives, widening the set of counterparties affected. Identifying those counterparties involves more than matching a trading name: OFAC’s screening guidance calls for comparing the complete listing with available company and transaction details. BitBank’s Tehran address and BITBANK3 alias are relevant identifiers in this case.

Note: This article is for news reporting purposes only and does not constitute investment advice.