SKN | U.S. Sanctions BitBank Over Alleged Bitcoin Flows Linked to Iran’s Strait of Hormuz

Key Points:

• OFAC sanctioned Tehran-based BitBank, alleging the exchange moved hundreds of millions of dollars in Bitcoin to Iran’s Islamic Revolutionary Guard Corps.
• U.S. authorities said BitBank also processed payments collected from vessels paying between $1 million and $2 million for passage-related services through the Strait of Hormuz.
• The action expands secondary sanctions risk for foreign exchanges and financial institutions that process BitBank-related transactions, even without direct U.S. involvement.

The U.S. Treasury has sanctioned Iranian cryptocurrency exchange BitBank, alleging that the platform played a role in moving large volumes of Bitcoin to regime-linked entities and processing payments connected to shipping through the Strait of Hormuz. The action highlights the growing intersection between cryptocurrency infrastructure, sanctions enforcement and geopolitical finance as governments increasingly scrutinize digital-asset channels used for cross-border payments.

BitBank Becomes a Target of U.S. Sanctions

The Treasury Department’s Office of Foreign Assets Control designated BitBank and its software developer, Pishtaz Simorgh Electronic Trade Company, on September 17. According to Treasury, BitBank was used between June and July 2026 to facilitate transfers of hundreds of millions of dollars worth of Bitcoin to the Islamic Revolutionary Guard Corps.

Treasury also identified BitBank as part of a broader digital-asset network associated with Iranian financier Babak Zanjani. The agency said the exchange had been operating since at least 2024 and formed part of infrastructure that authorities allege was used to move funds and circumvent financial restrictions.

Strait of Hormuz Payments Add a Maritime Dimension

The sanctions also connect BitBank to payments collected by the Hormuz Safe Marine Services Authority. Treasury said the entity began using BitBank in June to transfer payments it received to Iranian regime-linked entities.

According to the U.S. government, tankers have been charged between $1 million and $2 million for passage-related services through the Strait of Hormuz. HormuzSafe advertises insurance, traffic management and emergency-response services for vessels making the payment. Treasury said the authority itself was sanctioned on July 29.

The financial significance extends beyond cryptocurrency. The Strait of Hormuz is a critical global energy chokepoint, meaning payment systems associated with shipping activity can carry implications for oil markets, maritime finance and sanctions compliance.

Secondary Sanctions Raise the Compliance Stakes

For cryptocurrency businesses outside Iran, the most significant consequence may be the potential reach of U.S. secondary sanctions. Treasury said foreign institutions facilitating transactions involving designated Iranian entities can face restrictions affecting access to the U.S. financial system.

That creates exposure for offshore exchanges, banks and payment companies that may have no direct American participant in a transaction. A venue processing BitBank-related flows could therefore face compliance consequences through its relationship with the U.S. financial system, increasing the importance of transaction screening and counterparty controls.

No Wallet Addresses Were Identified

One notable feature of the designation is that Treasury did not publish specific cryptocurrency wallet addresses associated with BitBank in the announcement. That contrasts with some earlier crypto sanctions actions in which OFAC identified Bitcoin or TRON addresses that compliance teams could directly add to blockchain-monitoring systems.

The distinction matters for digital-asset infrastructure because an entity-level designation and a wallet-level designation can create different operational requirements for exchanges and custodians. Companies dealing with Iranian users or counterparties may therefore need to rely more heavily on customer identification, transaction monitoring and exposure analysis rather than address-based screening alone.

For crypto markets, the BitBank designation reinforces a broader trend toward treating digital-asset intermediaries as part of the regulated financial perimeter. Treasury has already targeted multiple Iranian crypto exchanges in 2026, suggesting that enforcement attention is extending beyond individual wallets toward the exchanges, software providers and financial networks supporting digital-asset flows. Future actions will be closely watched for additional wallet designations, foreign intermediaries and potential effects on global crypto liquidity.