U.S. Sanctions Iran’s BitBank as Bitcoin Becomes Gateway for Hormuz Passage Fees

U.S. Targets Iran’s Digital Toll Booth

The U.S. Treasury has imposed fresh sanctions on BitBank, a Tehran-based crypto exchange established in 2024, after uncovering its role in processing Bitcoin payments for ships transiting the Strait of Hormuz. Since June 2024, the Hormuz Safe Marine Services Authority—a government-backed entity—has charged international tankers between $1 million and $2 million per vessel to cross this critical maritime chokepoint, collecting a portion of these fees in Bitcoin.

Washington’s move targets not only BitBank but also Pishtaz Simorgh Electronic Trade Company, which developed the platform, and three associates linked to Iranian financier Babak Zanjani. The U.S. alleges that BitBank funneled “hundreds of millions of dollars” in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC), a group designated as a terrorist organization by the U.S. Effectively turning digital assets into a new channel for regime funding.

BitBank was established in Tehran in 2024 and quickly became a central player in routing maritime toll payments.

Bitcoin Flows Fuel IRGC Finances

The Treasury’s action, announced Thursday, is part of a broader effort to disrupt what officials describe as an evolving sanctions-evasion infrastructure built around digital assets. According to coindesk.com, since June, Hormuz Safe Marine Services Authority has routed Bitcoin payments through BitBank directly to entities controlled by the IRGC.

Babak Zanjani, whose death sentence in Iran was commuted in 2024, is alleged to be at the center of this network. U.S. authorities say Zanjani and his associates used BitBank to launder hundreds of millions of dollars’ worth of Bitcoin, with Pishtaz Simorgh Electronic Trade Company providing the technical backbone for these transfers. Three executives from Dot One Value Creation Group—the parent company of Pishtaz Simorgh—were also named in the sanctions list under Executive Order 13902, which was extended in August specifically to target Iran’s digital asset sector.

No wallet addresses were included in Wednesday’s OFAC announcement, leaving some gaps in public blockchain tracing efforts.

Hormuz Payments Enter Crypto Crosshairs

The Hormuz Safe Marine Services Authority began using BitBank to transfer collected funds to regime-linked entities after being sanctioned itself on July 29. Notably, HormuzSafe offers insurance and emergency response srvices for vessels that pay its tolls—a system developed by Iran’s economy ministry and now under scrutiny for its reliance on digital assets. Between June and July alone, authorities allege that BitBank channeled hundreds of millions in Bitcoin from shipping companies seeking safe passage through the strait.

This development comes as Iran expands its use of crypto-backed services: earlier this year, it launched a bitcoin-based insurance product for domestic shipping firms. Yet while these innovations aim to sidestep traditional financial controls, they have triggered swift countermeasures from Washington: U.S.-based property belonging to any sanctioned individual or entity is now frozen, and Americans are barred from any dealings with them.

Why it matters: Practical Impact and Market Tension

The crackdown on BitBank highlights a growing tension between surging crypto adoption and regulatory enforcement. On one hand, Bitcoin remains the world’s top cryptocurrency by market cap—currently trading at $80,931 as of September 18, 2026—demonstrating extraordinary resilience despite multiple rounds of sanctions targeting its use in illicit finance. Over the past month alone, BTC has edged up by 0.24%, even as U.S. authorities have ramped up their scrutiny of Iranian digital asset flows.

Yet this headline stability masks underlying volatility: while official action aims to choke off funding pipelines like those run through BitBank, the absence of published wallet addresses complicates efforts by outside observers to track or freeze illicit flows on-chain. This creates a dilemma for compliance teams at global exchanges and shipping companies alike—secondary sanctions now loom over any foreign firm caught facilitating transactions with BitBank or its affiliates.

There is also an unresolved contrast: while Iran leverages blockchain rails for state revenue collection—turning tolls into crypto—the U.S. response is still hampered by gaps in transparency and enforcement reach.

BitBank’s Role in Maritime Revenues

BitBank’s emergence as a key conduit for maritime revenue comes at a time when traditional financial routes are increasingly blocked for Tehran. The platform was set up just months ago but rapidly became central to processing large-value payments from international shipping firms crossing one of the world’s busiest oil routes. The sums involved are significant: each tanker pays up to $2 million per crossing via Hormuz Safe Marine Services Authority, with portions now routinely settled in Bitcoin rather than fiat currency.

For foreign firms—including shipowners and insurers—the risk calculus has shifted sharply since July 29: secondary sanctions threaten exclusion from U.S.-linked markets if they process flows tied to BitBank or its network partners. Meanwhile, the lack of disclosed wallet addresses leaves many compliance teams uncertain about how best to screen transactions or avoid inadvertent exposure.

Near-term focus

Market attention will center on whether foreign firms continue processing flows for BitBank after the July 29 OFAC designation, as any such activity now risks immediate secondary sanctions; if non-U.S. entities halt transactions with BitBank, cross-border crypto movement linked to Iran’s Hormuz tolls could be disrupted at once.