US sanctions Iranian crypto exchange BitBank over alleged bitcoin transfers to IRGC
Treasury said the previously sanctioned Hormuz Safe platform used BitBank to transfer payments collected since June.
The U.S. Department of the Treasury has sanctioned Iranian cryptocurrency exchange BitBank, accusing the platform of facilitating bitcoin transfers on behalf of the Islamic Revolutionary Guard Corps (IRGC). According to Treasury officials, BitBank was used by the previously sanctioned Hormuz Safe platform to process and transfer payments collected since June of this year. The designation places BitBank under the full weight of U.S. sanctions, effectively cutting it off from the American financial system and any entities operating within U.S. jurisdiction.
Hormuz Safe had already been subject to U.S. sanctions prior to this action, flagged for its alleged ties to the IRGC — Iran's powerful military force, which the United States has designated as a foreign terrorist organization. The use of cryptocurrency infrastructure to circumvent existing sanctions has been a persistent concern for U.S. regulators and law enforcement agencies, with Iranian entities repeatedly identified as attempting to leverage digital assets to access international markets despite restrictions.
The designation of BitBank underscores growing regulatory scrutiny of cryptocurrency exchanges operating in jurisdictions under heavy sanctions regimes. Compliance teams across the industry are likely to face renewed pressure to strengthen their screening processes for counterparties linked to sanctioned entities or geographic regions flagged by the Office of Foreign Assets Control (OFAC).
Observers will be watching whether additional exchanges or intermediaries connected to the Hormuz Safe payment network face further designations in the coming weeks.
Source: The Block
