Treasury has sanctioned an Iranian crypto exchange tied to the country’s shipping tolls on ships passing through the Strait of Hormuz, designating BitBank and several connected companies under Operation Economic Outcast. The move targets a financier who was already sanctioned in January, and it comes as the U.S. government steps up pressure on Iran’s digital asset sector.
BitBank is controlled by Babak Zanjani, a financier who was designated by OFAC in January. Since June, the Hormuz Safe Marine Services Authority has routed its payments through BitBank. Between June and July, Treasury says BitBank moved “hundreds of millions of dollars’ worth of Bitcoin” to the Islamic Revolutionary Guard Corps, or IRGC.
Zanjani was sentenced to death in Iran in 2016 for embezzling from the National Iranian Oil Company. His sentence was commuted in 2024. He resurfaced last year backing regime-linked ventures and has advertised BitBank on social media since at least 2024.
The Designations Under Operation Economic Outcast
The action covers BitBank itself, along with Pishtaz Simorgh Electronic Trade Company, a subsidiary of the already-designated Dot One Value Creation Group. Three Dot One executives were also designated: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari.
All five were designated under Executive Order 13902, which the administration extended in August. Treasury Secretary Scott Bessent said: “If you support the Iranian regime, the Department of the Treasury will sanction you.”
Operation Economic Outcast was announced on August 24 and dubbed Economic D-Day.
What the Sanctions Cover
U.S. assets belonging to the five are blocked, as are any entities they own half or more of. Non-U.S. firms dealing with them risk secondary sanctions.
The designation means anyone doing business with BitBank or the other four now faces exposure to the U.S. financial system.
The Odds on the Strait
On Myriad, a prediction market, the odds of Washington announcing an end to its naval blockade of Iranian shipping by September 30 have fallen to 10%, down 30 points. A December 31 deadline is only a 60% shot according to the same market.
These odds reflect uncertainty about whether the U.S. will ease its maritime pressure on Iran. They do not change the facts on the ground, but they show how closely traders are watching the diplomatic balance.
Who Is Babak Zanjani
Zanjani’s path back into public view is notable. After being sentenced to death in 2016 for embezzlement from the National Iranian Oil Company, his sentence was commuted in 2024. He then began promoting BitBank on social media, a pattern that has continued since at least 2024.
His return has been visible in recent years, with him backing regime-linked ventures.
How the Bitcoin Moved
Between June and July, Treasury says BitBank moved “hundreds of millions of dollars’ worth of Bitcoin” to the IRGC. The exact amount is not stated publicly, but the scale of the transfer is the kind of figure that catches attention in a space where smaller sums are routine.
The routing through BitBank began in June, when the Hormuz Safe Marine Services Authority started sending its payments through the exchange.
What the Designations Mean Now
The designations are effective immediately. U.S. persons are prohibited from dealing with the five individuals and entities, and any property they hold in the U.S. is blocked. Foreign banks and companies that continue to do business with them risk secondary sanctions.
Pishtaz Simorgh Electronic Trade Company is listed as a subsidiary, and the three executives add human names to a picture that had previously been abstract.
The Political Context
The sanctions come as the U.S. intensifies its pressure on Iran’s digital economy. The designation of BitBank is part of a broader effort to cut off funding channels for the Iranian regime, and the timing of Operation Economic Outcast suggests this is not a one-off move but part of a sustained campaign.
The use of Executive Order 13902, extended in August, gives the administration flexibility to target digital assets and the people who move them. The extension means the order remains in force, and the designations under it carry the full weight of U.S. financial law.
A Prediction Market’s View
Myriad, the prediction market, puts the odds of a September 30 announcement ending the blockade at 10%. That is a low number, down 30 points from some earlier reading. The December 31 deadline is seen as a 60% shot.
These odds are trader assessments, not official statements. They reflect what market participants believe about the likelihood of a deal. The numbers show that the blockade remains a live issue.
| Event | Probability on Myriad |
|---|---|
| End of blockade by Sept. 30 | 10% |
| Dec. 31 deadline reached | 60% |
What Happens Next
The sanctions are now in place. The question is how Iran responds, and whether the pressure on BitBank and the other four changes the calculus for the regime.
The odds on Myriad suggest traders think a deal is possible but unlikely before September 30. Whether the sanctions accelerate that timeline remains to be seen.
| Timeline Item | Date |
|---|---|
| OFAC designation of Zanjani | January |
| Payment routing through BitBank begins | June |
| Bitcoin transfers to IRGC | June-July |
| Operation Economic Outcast announced | Aug. 24 |
| Executive Order 13902 extended | August |
| Blockade end odds (Myriad) | Down 30 points since some earlier reading |
| Dec. 31 deadline odds (Myriad) | 60% |
The sanctions are effective immediately. The odds on Myriad show traders think a deal is possible but unlikely before September 30. Whether the sanctions accelerate that timeline remains to be seen.
Where the paper stands
The paper backs the small business against the agency and the giant, and is against the agency expanding its reach into the digital asset sector without clear limits on what harm it can target. The designation of BitBank and its affiliates is a real sanction against a real financier with a long record, and the paper does not oppose that. But the agency’s growing reach into a sector it did not regulate before raises questions about who writes these rules and who benefits from them.
The pattern here is familiar. An agency widens its authority into a field it did not oversee before, using a broad executive order to target individuals and businesses alike. The paper’s concern is not the sanction itself but the precedent it sets, and the risk that the agency will gather more power over private life without clear limits on what harm it can target.
Readers should watch for the agency writing its own authority, mandates on private life, and any office gathering more power, whichever party holds it. The paper wants oversight narrow and aimed at the harm, not a broad new rulebook written by the biggest firms.
Source material: “Treasury Sanctions Crypto Exchange Behind Iran's Bitcoin Tolls on Hormuz Ships,” Decrypt.
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