US Sanctions BitBank over $100M Bitcoin Transfers to IRGC
Treasury targets Zanjani's exchange after it moved hundreds of millions in Bitcoin to Iran's military.
Key points
- US Treasury designated BitBank and its developer for moving hundreds of millions in Bitcoin to the IRGC.
- Operation Economic Outcast targets digital asset networks to sever Iran's economic lifelines and sanction evaders.
- Babak Zanjani’s enterprises serve as covert financial platforms that launder money for Iranian state-linked entities.
The US Treasury designated BitBank on September 17 for moving hundreds of millions of dollars in Bitcoin to the IRGC. This action targets a network controlled by Iranian financier Babak Zanjani that evades sanctions.
OFAC also named BitBank’s developer and three associates as key components of Iran’s digital assets evasion infrastructure. Treasury officials stated that these designations close a major loophole in the regime’s financial systems.
Operation Economic Outcast targets illicit revenue
Secretary Scott Bessent announced Operation Economic Outcast on August 24 to sever remaining economic lifelines for Iran. The initiative works with EU and Gulf partners to map and disrupt financial channels used for smuggling.
Treasury warned that entities facilitating money laundering for Iran risk being cut off from the US financial system. This represents a significant escalation in enforcement against the regime’s covert financial platforms.
Zanjani’s network links public ventures to covert finance
Zanjani’s enterprises function as both commercial ventures and covert platforms for supporting Iranian state-linked entities. He has advertised BitBank’s services since 2024 while maintaining a public profile in infrastructure projects.
According to news.az, Zanjani used BitBank between June and July to transfer massive amounts of Bitcoin to the IRGC. This activity occurred after his death sentence was commuted in 2024 and his subsequent re-emergence.
Secondary sanctions exposure accelerates enforcement pace
Previous designations in January and July targeted other Zanjani-linked digital asset facilitators. The current action expands the scope of enforcement to the core exchange infrastructure itself.
Treasury emphasized that partners doing business with the regime face secondary sanctions exposure. This policy aims to isolate Iran’s illicit revenue sources by deterring global financial participation.
