US Sanctions Iran’s BitBank Over IRGC Bitcoin Transfers
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The US Department of the Treasury sanctioned Iranian crypto exchange BitBank on the grounds that it processed Bitcoin payments from ships transiting the Strait of Hormuz. These payments were linked to the Hormuz Safe Marine Services Authority, which allegedly transferred funds to the Islamic Revolutionary Guard Corps (IRGC). The sanctions also targeted BitBank's developer, Pishtaz Simorgh Electronic Trade Company, and associates of Iranian financier Babak Zanjani involved in the IRGC's digital asset sanctions evasion infrastructure.
Why it matters
The Treasury emphasized that its actions demonstrate that efforts to finance the Iranian regime via cryptocurrencies remain subject to US sanctions enforcement. This measure aims to further isolate Iran from the international financial system and disrupt crypto-based sanctions evasion schemes.
Key context
This sanction follows previous US actions targeting Iranian crypto exchanges such as Shelbit, Aban Tether, and Nobitex for sanctions evasion. The Hormuz Safe Marine Services Authority has been accused of forcing vessels to pay mandatory maritime insurance fees, part of which allegedly finance the IRGC. The Treasury had earlier frozen over $130 million in USDT linked to Iran.
Key numbers and entities
Sanctioned entities include BitBank (established 2024), Pishtaz Simorgh Electronic Trade Company, and three associates of Babak Zanjani. US Treasury Secretary Scott Bessent is quoted about the significance of the designations. BitBank is distinct from bitbank, inc, a licensed Japanese exchange acquired by SBI Holdings in June.
What remains unclear
The source does not provide details on BitBank’s response to the sanctions or specific financial volumes processed via BitBank. The operational status of BitBank following these sanctions and the broader impact on Iran’s crypto ecosystem remain unspecified.