US Treasury Targets Iran Digital Asset Network

The US Treasury Department sanctioned Iranian digital asset exchange BitBank on Thursday. The action targets a network accused of transferring hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps. Officials state the transfers occurred between June and July. The measures also cover the software developer for the exchange and three associates of financier Babak Zanjani.

Treasury identifies specific financial channels

The Office of Foreign Assets Control designated Pishtaz Simorgh Electronic Trade Company. This entity developed the digital asset software used by BitBank. Three individuals linked to Zanjani's Dot One Value Creation Group also received sanctions. Hossein Ali Zaker Hossein is accused of involvement in oil exports and asset transfers. Mohammad Mahdi Zaker Hossein serves as chief executive of the software developer. Seyed Adel Heidari acts as vice chairman of Dot One's board.

Zanjani network operates under legal constraints

Babak Zanjani was sentenced to death in Iran in 2016. His sentence was commuted in 2024. He re-emerged publicly in 2025 as a backer of government-linked projects. Treasury says he built a network of digital asset companies to launder money for the IRGC. The department designated Zanjani and two exchanges on January 30. This marked the first designation of a digital asset exchange for operating in Iran's financial sector.

Broader economic campaign expands scope

The new designations fall under Executive Order 13902. They are part of Operation Economic Outcast, announced on August 24. Treasury Secretary Scott Bessent stated that efforts to finance the Iranian regime with cryptocurrencies are within reach. The campaign targets networks used to smuggle oil and evade sanctions. Hormuz Safe Marine Services Authority also used BitBank to transfer payments to the government. Shafaq News reported on the scope of these financial controls.