Throughout this year, Iran has charged between $1 million and $2 million for tankers to navigate the Strait of Hormuz. According to the U.S. Treasury, since June, a portion of these funds has been funneled through a cryptocurrency exchange based in Tehran.
A recent announcement released on Thursday indicates that the Office of Foreign Assets Control (OFAC) has classified BitBank, a crypto exchange established in Tehran in 2024, along with Pishtaz Simorgh Electronic Trade Company, the developer behind it.
“The designations made today regarding Iranian digital asset infrastructure clearly demonstrate that attempts to finance the Iranian regime through cryptocurrencies are within OFAC’s sights,” stated Treasury Secretary Scott Bessent.
The OFAC claims that BitBank has facilitated the transfer of hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps, the segment of Iran’s military that significantly influences the nation’s economy and is designated as a terrorist organization by the United States.
During this same timeframe, the Hormuz Safe Marine Services Authority — the entity Iran uses to provide “safe passage” insurance for vessels and which was sanctioned on July 29 — has begun utilizing BitBank to transfer the funds it collects to regime-affiliated organizations.