US Sanctions BitBank over Hormuz Shipping Payments
The US Treasury sanctioned BitBank, an Iranian crypto exchange, for moving hundreds of millions of dollars to the IRGC to pay for safe passage through the Strait of Hormuz.
The US Treasury sanctioned BitBank on Thursday. The exchange is controlled by Babak Zanjani, a designated Iranian financier. Authorities accused the platform of processing payments for maritime transit. These payments were made to the Hormuz Safe Marine Services Authority. The funds facilitated safe passage for ships through the Strait of Hormuz.
Treasury officials stated that BitBank routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps. The agency described the exchange as a core part of Iran’s digital asset evasion network. This designation targets the financial infrastructure supporting Iranian state-linked entities. The action isolates specific nodes in Iran’s global commercial web.
Zanjani’s extensive sanction history
Zanjani was sentenced to death in Iran in 2016 for embezzlement. His sentence was commuted in 2024. He returned to public life as a backer of government economic projects. In January, Treasury sanctioned his previous platforms Zedcex and Zedxion. Those firms were accused of laundering money for the IRGC.
The US also sanctioned seven other individuals and entities. This includes Pishtaz Simorgh Electronic Trade Company. That firm developed the software for BitBank. Three associates of Zanjani were also designated. They are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
Operation Economic Outcast framework
This move is part of Operation Economic Outcast. The strategy aims to disrupt Iran’s global financial networks. It targets illicit oil trade and financial intermediaries. The program also addresses shipping and aviation front companies. Treasury stated that Zanjani’s ventures serve as covert financial platforms.
The agency views these entities as dual-purpose commercial and illicit operations. They enable sanctions evasion and support for state-linked groups. The report is based on data from the Jerusalem Post. The sanctions aim to sever the link between digital assets and military funding. This tightens the economic pressure on Tehran’s logistical capabilities.
Strait of Hormuz payment mechanism
The Hormuz Safe Marine Services Authority collected fees for ship transit. BitBank processed these digital asset payments. The flow of money supported the security of maritime routes. This mechanism allowed vessels to pass through the narrow waterway. The sanctions block this specific financial channel.
US regulators focus on the integration of crypto into state logistics. The exchange acted as a payment processor for military-related services. This blurs the line between commercial trade and state security. The designation forces global banks to cut ties with these entities. It reduces the liquidity available for such transactions.
