U.S. Sanctions Bitbank and Associates for Bitcoin Transfers to Iran
- The U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Bitbank on September 17, blocking its assets.
- Babak Zanjani allegedly used Bitbank to transfer hundreds of millions in bitcoin to the Islamic Revolutionary Guard Corps (IRGC).
- Three associates of Zanjani, executives at Dot One Value Creation Group, were also sanctioned.
- Zanjani was previously designated by OFAC for his involvement in Iran’s financial sector and embezzling oil revenue.
- Operation Economic Outcast aims to disrupt networks Iran uses for smuggling and sanction evasion.
The U.S. Treasury has intensified its crackdown on Iranian cryptocurrency flows by sanctioning Bitbank and its developer, Pishtaz Simorgh Electronic Trade Company, along with several individuals linked to Babak Zanjani’s network. This action is part of a broader effort to prevent the use of digital assets in financing the Iranian regime.
OFAC’s designation highlights the significant role cryptocurrencies play in circumventing sanctions, with Bitbank facilitating substantial bitcoin transactions tied to the IRGC. This underscores the ongoing challenges in regulating digital currencies globally.(Source)
