The United States sanctioned the Iranian cryptocurrency exchange BitBank on Thursday (17), accusing the platform of being part of a network used to transfer payments tied to the transit of ships through the Strait of Hormuz and to move hundreds of millions of dollars in bitcoin to Iran's Revolutionary Guard.
According to the US Department of the Treasury, BitBank is controlled by Iranian financier Babak Zanjani, who was already under American sanctions. Between June and July, Zanjani allegedly used the platform to facilitate transfers of hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps (IRGC).
The exchange was also allegedly used since June by Hormuz Safe Marine Services Authority to pass on to the Iranian government payments received from vessels transiting the Strait of Hormuz. The entity had already been sanctioned by the US in July.
Hormuz Safe offers maritime services, including insurance, traffic control, security and emergency response. The Treasury says the company accepts payments in bitcoin and other digital assets and is part of an Iranian system to collect funds from ships crossing one of the main routes of the global oil trade.
Sanctions also hit developer and executives
In addition to BitBank, OFAC sanctioned Pishtaz Simorgh Electronic Trade Company, responsible for the exchange's software, and three associates of Zanjani: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
With the designation, property and interests in property of the targets that are in the United States or under the control of American persons are blocked. Transactions involving these entities are also generally prohibited for persons and companies subject to US jurisdiction. Foreign institutions that carry out certain operations with sanctioned entities may also be exposed to secondary sanctions.
The measure is part of the Operation Economic Outcast, a campaign announced by the American government in August to expand financial pressure on Iran. The Treasury had already sanctioned in January the digital asset platforms Zedcex and Zedxion, also associated with Zanjani, and again targeted companies linked to the financier in July.
