Treasury Sanctions Iranian Crypto Exchange Linked To Hormuz Ship Tolls

source: coindesk

The U.S. Treasury sanctioned an Iranian cryptocurrency exchange called BitBank on Thursday, accusing it of moving hundreds of millions of dollars in Bitcoin to Iran's Revolutionary Guards, according to CoinDesk.

Iran has charged tankers between $1 million and $2 million this year for safe passage through the Strait of Hormuz, CoinDesk reported. Part of that money has moved through BitBank since June, the Treasury's Office of Foreign Assets Control said.

OFAC said the Hormuz Safe Marine Services Authority, the body that collects the toll payments, used BitBank to pass the funds along to the Islamic Revolutionary Guard Corps.

Treasury designated Hormuz Safe in July over a scheme that forces vessels to buy maritime insurance, including coverage against seizure by Iran itself, according to marineinsight.com.

Exchange Tied To A Sanctioned Financier

BitBank is controlled by Babak Zanjani, an Iranian financier the Treasury designated in January, Decrypt reported. Zanjani was sentenced to death in Iran in 2016 over embezzlement from the National Iranian Oil Company.

That sentence was commuted in 2024, and he resurfaced last year backing ventures tied to the regime, according to Decrypt. Treasury said he has promoted BitBank on his social media accounts since at least 2024.