Daijiworld Media Network - Washington
Washington, Sep 18: The United States has sanctioned an Iranian cryptocurrency exchange and its developer, alleging that the network facilitated the transfer of hundreds of millions of dollars in Bitcoin to Iran's Islamic Revolutionary Guard Corps (IRGC).
The US Treasury Department said the exchange, BitBank, was part of a sanctions-evasion network allegedly controlled by Iranian businessman Babak Zanjani. The action was taken under Operation Economic Outcast, the Trump administration's economic campaign targeting Iran and entities facilitating its financial activities.
Those designated include BitBank, its software developer Pishtaz Simorgh Electronic Trade Company, and three individuals — Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
"Today's designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC's reach," Treasury Secretary Scott Bessent said.
"If you support the Iranian regime, the Department of the Treasury will sanction you," he added.
According to the Treasury, Zanjani used BitBank between June and July to facilitate Bitcoin transfers worth hundreds of millions of dollars to the IRGC. The department also alleged that the sanctioned Hormuz Safe Marine Services Authority had used the platform since June to transfer payments it received to the Iranian government.
The statements released by the US authorities did not include responses from BitBank, Zanjani, the other designated individuals or the Iranian government.
The Treasury said Zanjani had promoted BitBank through his social media accounts since at least 2024, while several companies within his alleged sanctions-evasion network had identified the exchange as a partner.
Pishtaz Simorgh, which developed BitBank's digital asset software, is a subsidiary of the previously sanctioned Dot One Value Creation Group, the Treasury said. BitBank and Pishtaz Simorgh were designated for operating in Iran's digital asset sector.
The Treasury identified the three sanctioned individuals as executives or associates of Dot One who were allegedly involved in Zanjani's network.
It alleged that Hossein Ali Zaker Hossein was involved in Iranian oil exports and digital asset transfers, including brokering transactions whose proceeds ultimately reached the IRGC. Mohammad Mahdi Zaker Hossein is the chief executive of Pishtaz Simorgh and a manager and representative of Dot One, while Heidari is vice chairman of Dot One's board.
The sanctions block property and interests in property held in the United States or controlled by US persons. Entities owned 50 per cent or more, directly or indirectly, by one or more blocked persons are also subject to the restrictions, according to the Treasury.
Separately, the US State Department urged governments and private companies, particularly digital asset firms, to guard against the use of their platforms by Iran.
State Department spokesperson Tommy Pigott said international cryptocurrency exchanges had provided Iran, including its central bank, with access to the international financial system.