The United States has sanctioned Iranian cryptocurrency exchange Bitbank and its software developer, alleging that financier Babak Zanjani used the platform to move hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps (IRGC).
The Treasury Department’s 17 September action also targeted Pishtaz Simorgh Electronic Trade Company, which developed Bitbank’s software. The company is a subsidiary of Dot One Value Creation Group, which had already been sanctioned.
The Office of Foreign Assets Control (OFAC) also designated three executives of Dot One: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
Treasury describes Zanjani as an Iranian businessman and sanctions evader involved in oil exports, transport, technology and financial services. OFAC sanctioned him in January for operating in Iran’s financial sector.
He was convicted in Iran of embezzling billions of dollars in oil revenue. Treasury also alleges that he financed major projects supporting the IRGC and the Iranian regime, while exchanges linked to him processed funds for wallets associated with the organisation.
OFAC says Bitbank was used between June and July to transfer hundreds of millions of dollars in bitcoin to the IRGC. Treasury added that Hormuz Safe Marine Services Authority, which was previously designated, had used Bitbank since June to transfer payments it received to the Iranian regime.
Treasury Secretary Scott Bessent also issued a statement in relation to the designation.
Wider crypto network targeted
Blockchain intelligence company TRM Labs said the action formed part of a wider network involving exchanges, payment companies, consumer applications and proprietary blockchain infrastructure.
Its analysis of the Zanjani network found that about $1bn in activity linked to the IRGC had moved through Zedcex and Zedxion, two exchanges sanctioned earlier this year.
The latest measures follow OFAC’s January designation of Zanjani and the UK-registered exchanges Zedcex and Zedxion. Treasury said those platforms processed money connected to IRGC counterparties. Earlier findings by the department said Zedcex had recorded more than $94bn in transactions since its incorporation in 2022.
In June, OFAC also sanctioned Nobitex, Wallex, Bitpin and Ramzinex, along with four Iranian nationals. Treasury described Nobitex as Iran’s largest digital asset exchange and alleged that it handled more than half of the country’s cryptocurrency inflows during 2025 while facilitating payments linked to the IRGC.
On 24 July, OFAC returned to Zanjani’s network by designating Dot One Value Creation Group and other companies and facilitators associated with him.
The action comes under Operation Economic Outcast, a government-wide Treasury campaign launched on 24 August to disrupt Iranian networks involved in oil smuggling, sanctions evasion and terrorism financing.
Under Executive Order 13902, Iran’s digital asset sector is subject to sanctions. Foreign companies and individuals operating in, or supporting, the sector may therefore face secondary-sanctions exposure.
Property belonging to designated parties that enters the United States or comes under US control is blocked and must be reported to OFAC. Companies 50% or more owned by blocked persons are also subject to restrictions, while US persons generally cannot transact with them without authorisation or an exemption.
Civil penalties can apply on a strict-liability basis, meaning intent does not have to be proven. US prosecutors are separately seeking forfeiture of roughly $61m in cryptocurrency allegedly generated through sanctioned Iranian oil sales.
