US Sanctions Target Iranian Digital Asset Network
Washington blocked assets linked to BitBank and three individuals accused of moving billions in Bitcoin for the IRGC.
The United States Treasury Department has blocked assets linked to BitBank and its developer. The action targets an Iranian digital-asset network. Washington alleges the network moved hundreds of millions of dollars in Bitcoin for the IRGC. The transfers occurred between June and July 2026.
The measures were announced under Operation Economic Outcast. Five parties are now designated. These include two entities and three individuals. The goal is to stop sanctions evasion by Iranian state-linked groups.
BitBank and its Developers Designated
OFAC designated BitBank as a digital-assets venture. It is controlled by Iranian financier Babak Zanjani. Pishtaz Simorgh Electronic Trade Company also faced sanctions. Treasury identifies this firm as the developer of BitBank’s software. Three individuals associated with Zanjani’s network were also targeted.
The designated individuals are Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Their assets in U.S. jurisdiction are now frozen. U.S. persons are prohibited from transacting with these parties. Exceptions apply only with specific authorization.
Legal Basis and Operational Scope
Treasury Secretary Scott Bessent announced the broader campaign in August 2026. The operation targets Iranian financial networks. The authorities cited are under Executive Order 13902. This order grants sanctions power over Iran’s economy. It explicitly includes the digital-assets sector.
The State Department says the action addresses misuse of global platforms. Iranian entities are accused of using these gateways for illicit finance. Washington warns that the IRGC relies on these channels. The U.S. intends to restrict access to such resources.
Industry Warning and Compliance Demands
The State Department called on private-sector companies to act. It urged firms in the digital-assets industry to increase vigilance. Companies must prevent the misuse of their platforms. The U.S. government emphasizes the need for strict compliance. This is a critical part of the new sanctions framework.
IBG News reported on the details of the designation. The action marks a significant step in regulating crypto assets. It reflects a broader push to isolate Iranian financial actors. The market impact remains under observation by regulators.
