US Sanctions Iranian Crypto Exchange BitBank Over Alleged IRGC Transfers

The U. S. Treasury Department's Office of Foreign Assets Control designated Iranian crypto exchange BitBank on September 17, alleging that it facilitated transfers of hundreds of millions of dollars in Bitcoin to Iran's Islamic Revolutionary Guard Corps.

The action also targeted BitBank's software developer, Pishtaz Simorgh Electronic Trade Company, and three associates of financier Babak Zanjani. Treasury imposed the designations under Executive Order 13902, according to the department's September 17 announcement. The allegations place the exchange at the centre of a purported payments channel involving the IRGC and the Hormuz Safe maritime scheme.

OFAC designates BitBank and related parties Treasury said OFAC designated BitBank, its software developer Pishtaz Simorgh Electronic Trade Company and three associates of financier Babak Zanjani. The designation was made under Executive Order 13902, Treasury said. Treasury alleged that BitBank facilitated transactions tied to the Islamic Revolutionary Guard Corps (IRGC).

Bitcoin transfers and Hormuz Safe The U. S. Treasury Department alleged that BitBank facilitated Bitcoin transfers worth hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC), including payments routed through the Hormuz Safe maritime scheme.

Treasury specifically identified Bitcoin in describing the purported transfers. The transaction account is an allegation by the U. S.

government, not an independently established account of the transactions. Property blocking and counterparty risk BitBank-related property subject to U. S.

jurisdiction is blocked as a result of the sanctions, according to CoinDesk's September 18 reporting on the designation. The report also said foreign financial institutions that handle transactions for the exchange could face potential U. S.

sanctions. That exposure extends the practical significance of the measure beyond U. S.

persons and property. Foreign institutions considering dealings involving BitBank must now account for the potential sanctions risk described in the reporting. Disclaimer: This article is provided for informational purposes only.

It is not offered or intended to be used as legal, tax, investment, financial, or other advice.