The U.S. Treasury said its Office of Foreign Assets Control has sanctioned Iranian digital asset exchange BitBank, its developer Pishtaz Simorgh Electronic Trade Company, and three individuals tied to financier Babak Zanjani, alleging the platform was used to help move funds for Iran’s sanctions-evasion network.

Treasury described BitBank as a digital asset venture controlled by Zanjani, an already sanctioned Iranian financier. The agency said Zanjani had promoted BitBank since at least 2024 and that the exchange had been listed as a partner by other companies in his network. Treasury also named three associates as part of the action: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.

According to Treasury, between June and July of this year, Zanjani used BitBank to facilitate the transfer of hundreds of millions of dollars’ worth of Bitcoin to Iran’s Islamic Revolutionary Guard Corps. Treasury further said that since June, OFAC-designated Hormuz Safe Marine Services Authority had used BitBank to transfer payments it received to the Iranian regime. Those allegations were made by U.S. authorities as part of the designation and have not been independently established in the provided materials.

The action was announced under Operation Economic Outcast, a broader U.S. campaign targeting Iran-linked financial infrastructure and sanctions evasion. Treasury said any entity that facilitates money laundering or sanctions evasion on behalf of Iran risks being cut off from the U.S. financial system. As with other OFAC designations, U.S. persons are generally barred from dealings with the sanctioned parties, and property or interests in property subject to U.S. jurisdiction are blocked.

The BitBank case also stands out because Treasury targeted more than a trading venue. By sanctioning the exchange, its software developer, and associated individuals together, OFAC signaled that enforcement can extend across the full operating chain behind a crypto business when authorities believe the infrastructure supports sanctions evasion.

Why It Matters

This designation pushes crypto sanctions enforcement closer to the standards long applied to traditional financial institutions. For exchanges and other virtual asset service providers, the message is that sanctions risk is no longer limited to screening wallet addresses or avoiding direct U.S. exposure. Corporate links, software providers, management ties, and payment flows may all become relevant in enforcement reviews.

The broader significance is institutional. As regulators treat crypto infrastructure as part of cross-border financial plumbing, compliance expectations rise for offshore platforms, banking partners, and service providers that touch higher-risk jurisdictions. That could further narrow the space for lightly screened cross-border crypto settlement where sanctions exposure is a concern.