Key Takeaways
- • The U.S. Treasury Department designated BitBank, an Iranian cryptocurrency exchange controlled by sanctioned financier Babak Zanjani, as part of "Operation Economic Outcast," targeting Iran's sanctions-evasion infrastructure through digital assets.
- • BitBank allegedly transferred hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC) and processed payments for ships transiting the Strait of Hormuz via Iran's Hormuz Safe Marine Services Authority, circumventing financial sanctions.
- • The Treasury simultaneously sanctioned Pishtaz Simorgh Electronic Trade Company (BitBank's software developer) and three of Zanjani's associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
- • This action follows January 2026 sanctions against Zanjani and his two largest digital asset platforms, Zedcex Exchange Limited and Zedxion Exchange Limited, demonstrating escalating U.S. enforcement against Iran's cryptocurrency-based money laundering operations.
- • The designation underscores cryptocurrency exchanges' role as critical nodes in Iran's global financial evasion networks, targeting shipping, front companies, and digital asset intermediaries central to IRGC financing.
Summary
The U.S. Treasury Department imposed sanctions on Thursday against BitBank, an Iranian cryptocurrency exchange controlled by prominent sanctions-evasion figure Babak Zanjani. The action represents a continued escalation of Treasury's "Operation Economic Outcast," a comprehensive strategy designed to isolate Iran economically by disrupting its financial, commercial, and logistical networks globally.
According to the Treasury statement, BitBank functioned as a critical infrastructure element in Iran's digital asset-based sanctions-evasion apparatus. The exchange processed payments for maritime vessels transiting the Strait of Hormuz and transferred hundreds of millions of dollars directly to the Islamic Revolutionary Guard Corps. Specifically, BitBank facilitated fund flows tied to Iran's Hormuz Safe Marine Services Authority, an Iranian maritime-insurance scheme, enabling sanctions circumvention through cryptocurrency.
The sanctions designation extended beyond BitBank itself. Treasury simultaneously sanctioned Pishtaz Simorgh Electronic Trade Company, the software development firm that created the exchange platform, along with three associates of Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Zanjani, a long-standing figure in Iran's sanctions-evasion networks, received a death sentence from Iranian authorities in 2016 for embezzlement; his sentence was commuted in 2024, after which he re-emerged as a supporter of Iranian government economic projects.
This action builds on January 2026 Treasury sanctions against Zanjani and his two largest digital asset exchanges, Zedcex Exchange Limited and Zedxion Exchange Limited, which were designated for money laundering on behalf of the IRGC. The escalating enforcement pattern reflects Treasury's broadening focus on cryptocurrency exchanges and digital asset platforms as critical chokepoints in Iran's financial sanctions-evasion strategy, complementing existing operations targeting Iran's illicit oil trade, financial intermediaries, exchange houses, and shipping networks.
According to the Treasury statement, BitBank functioned as a critical infrastructure element in Iran's digital asset-based sanctions-evasion apparatus. The exchange processed payments for maritime vessels transiting the Strait of Hormuz and transferred hundreds of millions of dollars directly to the Islamic Revolutionary Guard Corps. Specifically, BitBank facilitated fund flows tied to Iran's Hormuz Safe Marine Services Authority, an Iranian maritime-insurance scheme, enabling sanctions circumvention through cryptocurrency.
The sanctions designation extended beyond BitBank itself. Treasury simultaneously sanctioned Pishtaz Simorgh Electronic Trade Company, the software development firm that created the exchange platform, along with three associates of Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari. Zanjani, a long-standing figure in Iran's sanctions-evasion networks, received a death sentence from Iranian authorities in 2016 for embezzlement; his sentence was commuted in 2024, after which he re-emerged as a supporter of Iranian government economic projects.
This action builds on January 2026 Treasury sanctions against Zanjani and his two largest digital asset exchanges, Zedcex Exchange Limited and Zedxion Exchange Limited, which were designated for money laundering on behalf of the IRGC. The escalating enforcement pattern reflects Treasury's broadening focus on cryptocurrency exchanges and digital asset platforms as critical chokepoints in Iran's financial sanctions-evasion strategy, complementing existing operations targeting Iran's illicit oil trade, financial intermediaries, exchange houses, and shipping networks.
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