US Sanctions Iran Crypto Exchange Over IRGC Fund Transfers

US targets Iran crypto network over IRGC funds

Washington, Sep 18

The Treasury Department said the exchange, BitBank, formed part of a sanctions evasion network controlled by Babak Zanjani. The action was taken under Operation Economic Outcast, the Trump administration's economic campaign against Iran and its financial facilitators.

Those designated were BitBank, its software developer Pishtaz Simorgh Electronic Trade Company, and Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.

"Today's designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach," Treasury Secretary Scott Bessent said.

"If you support the Iranian regime, the Department of the Treasury will sanction you."

Treasury alleged that Zanjani used BitBank between June and July to facilitate transfers of hundreds of millions of dollars' worth of Bitcoin to the IRGC. It also said the sanctioned Hormuz Safe Marine Services Authority had used the platform since June to transfer payments it received to the Iranian government.

The supplied statements did not include responses from BitBank, Zanjani, the other designated parties or the Iranian government.

According to Treasury, Zanjani has promoted BitBank on his social media accounts since at least 2024. Several companies within his alleged sanctions evasion network have also listed the exchange as a partner.

Pishtaz Simorgh, which developed BitBank's digital assets software, is a subsidiary of the already sanctioned Dot One Value Creation Group, Treasury said. Both BitBank and its developer were designated for operating in Iran's digital asset sector.

Treasury identified the three sanctioned individuals as Dot One executives and associates involved in Zanjani's network.

It alleged that Hossein Ali Zaker Hossein participated in Iranian oil exports and digital asset transfers, including brokering transactions whose proceeds ultimately reached the IRGC. Mohammad Mahdi Zaker Hossein is chief executive of Pishtaz Simorgh and a Dot One manager and representative. Heidari is vice chairman of Dot One's board.

The designations block property and interests in property held in the United States or controlled by US persons. Entities owned at least 50 per cent by one or more blocked persons are also covered, Treasury said.

The State Department separately urged governments and private companies, particularly digital asset businesses, to guard against Iranian use of their platforms. Spokesman Tommy Pigott said international exchanges had provided Iran, including its central bank, with access to the international financial system.

— IANS