US sanctions BitBank and software developer over alleged IRGC transfers

The US sanctioned Iranian crypto exchange BitBank and its software developer over alleged Bitcoin transfers to the IRGC. On Sept. 17, Treasury's Office of Foreign Assets Control said sanctioned Iranian financier Babak Zanjani used BitBank from June to July. OFAC said the exchange facilitated hundreds of millions of dollars in Bitcoin transfers to the IRGC. Treasury said Hormuz Safe Marine Services Authority had used BitBank since June to move receipts to the Iranian government. The action also covered BitBank's software developer, Pishtaz Simorgh Electronic Trade Company. OFAC designated Pishtaz Simorgh under Executive Order 13902. OFAC also designated three people tied to Zanjani's broader corporate network. Treasury Secretary Scott Bessent said crypto-based financing was not beyond OFAC's reach. Treasury launched Operation Economic Outcast on Aug. 24 to cut Iran off from financial channels used to move oil revenue. Treasury said the campaign also targets channels used to evade sanctions and fund the IRGC. TRM Labs said it initially identified about $1 billion in IRGC-linked activity tied to Zedcex and Zedxion. TRM said its investigation later identified BitBank and Pishtaz Simorgh within the same network as Dot One, ZedPay, the MyDot social platform, DOTO digital asset and Dot One Smart Chain. Treasury sanctioned Mohammad Mahdi Zaker Hossein for acting on behalf of Pishtaz Simorgh. Treasury designated Seyed Adel Heidari for acting on behalf of Dot One. Treasury sanctioned Hossein Ali Zaker Hossein for acting for Zanjani. Treasury alleged that Hossein Ali Zaker Hossein participated in Zanjani's sanctions-evasion activity and brokered crypto transfers that ultimately reached the IRGC.