US Treasury Sanctions BitBank to Disrupt Iranian Crypto Funding

The United States Department of the Treasury sanctioned BitBank, an Iranian cryptocurrency exchange, and its software developer, Pishtaz Simorgh Electronic Trade Company, on September 17, 2026. The action is part of Operation Economic Outcast, a campaign Treasury Secretary Scott Bessent described as Economic D-Day, aimed at severing the Iranian regime's economic lifelines with support from the EU, UK, and Gulf partners.

U.S. officials allege that BitBank, controlled by sanctioned financier Babak Zanjani, routed hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps between June and July 2026. The exchange reportedly processed payments for the Hormuz Safe Marine Services Authority, a bitcoin-settled maritime-insurance scheme that collected tolls from shipping companies for safe passage through the Strait of Hormuz.

In addition to the exchange and its developer, the Treasury designated three associates of Zanjani and executives from the Dot One Value Creation Group: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. These designations, issued under Executive Order 13902, block all property and interests of the targets within U.S. jurisdiction and expose non-U.S. firms dealing with them to secondary sanctions.

Secretary Bessent stated that the move demonstrates that cryptocurrency financing for the Iranian regime is not beyond the reach of the Office of Foreign Assets Control. These sanctions precede a scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping on September 24.