Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Autonomous Systems: Land & Sea
8NOV

BitBank and Zanjani hit by US sanctions

2 min read
19:26UTC

OFAC designated the Iranian crypto exchange BitBank on Thursday 17 September, along with its developer and three associates of Babak Zanjani. Treasury says a sanctioned Hormuz shipping authority has used it since June to pay the Iranian government.

TechnologyAssessed
Key takeaway

Iran's sanctioned shipping fees moved onto a crypto exchange, and Treasury has now seized that rail.

OFAC designated BitBank, an Iranian crypto exchange controlled by Babak Zanjani, along with its developer Pishtaz Simorgh Electronic Trade Company and three Zanjani associates on Thursday 17 September, in an action Treasury calls Operation Economic Outcast⁠1. Treasury says the already-designated Hormuz Safe Marine Services Authority has used BitBank since June 2026 to move payments to the Iranian government, and that Zanjani's network has pushed hundreds of millions of dollars in Bitcoin to the Islamic Revolutionary Guard Corps (IRGC)⁠2. Treasury asserts both claims and no independent body has tested them.

Read against the shipping file, the designation describes a substitution rather than a discovery. A marine services authority exists to collect fees, and fees have to settle somewhere. Cut off from correspondent banking, that traffic moves onto an exchange, and an exchange is a smaller, more brittle thing to seize than a bank: it has a named operator, a named developer and a handful of addresses. The chain is easier to sanction and easier to rebuild, which is why these actions arrive in sequence.

OFAC hit an earlier Zanjani network under the same executive order on 24 July, so this is a campaign continuing rather than a new front. Nothing in the announcement names a successor exchange, and Treasury has not said how much of the flagged Bitcoin was frozen rather than merely traced, so how fast the network rebuilds cannot be judged from the designation alone.

Deep Analysis

In plain English

BitBank is an Iranian cryptocurrency exchange controlled by Babak Zanjani, a financier who was convicted in 2016 of stealing $2.7 billion in Iranian oil money (his sentence was later reduced). The US Treasury's sanctions arm, OFAC, has now formally blacklisted BitBank, its software developer, and three of Zanjani's associates. Treasury says a shipping authority that operates in the strait of Hormuz, already under US sanctions, has been using BitBank since June to move money to the Iranian government. Sanctioning BitBank is meant to cut off that specific payment route, using cryptocurrency to get around the traditional banking sanctions Iran already faces.

What could happen next?
  • Meaning

    Treasury has documented, for the first time in this run's record, a specific crypto exchange used by an already-sanctioned Hormuz shipping entity to move government payments, rather than a general crypto-evasion warning.

First Reported In

Update #179 · Russia and China kill Iran's UN monitor

US Department of the Treasury· 21 Sept 2026
Read original →
Causes and effects
Different Perspectives
EDGE Group
EDGE Group
EDGE took control of Italian engine maker CMD in October and signed exploratory USV memorandums with Novamarine and Abu Dhabi Ship Building in early November. It is assembling an Italian hull and engine supply chain around Emirati autonomy, with no customer named.
Japan Ministry of Defense
Japan Ministry of Defense
Nikkei reported on 29 October that the ministry will start research in fiscal 2027 towards mass-producing underwater drones for detection and attack, with prototypes by fiscal 2035. The stated aim is to deter China's growing submarine fleet with fewer sailors at risk.
Kongsberg Discovery
Kongsberg Discovery
Kongsberg received a $54m DIU modification, mainly for AUV deliveries, and Camilla Kiss said the unit has signed 1.7bn Norwegian kroner of AUV contracts in 2026. The Norwegian maker sells into the US market as an established production line.
Elbit Systems
Elbit Systems
Elbit bought ISE of Vancouver, maker of more than 250 AUVs, on 20 October for a price it called not material. The Israeli group adds an underwater vehicle line to its naval business.
Defense Acquisition Program Administration
Defense Acquisition Program Administration
DAPA's 179th committee cleared a 591bn won mine-warfare USV programme on 6 November, alongside the Jangbogo-N nuclear submarine. HD Hyundai's Long Beach trial with Anduril shows Korean industry pitching hulls abroad while Seoul funds its own.
Finland National Emergency Supply Agency
Finland National Emergency Supply Agency
NESA opened an €11m competition on 4 November for radiation-sensing drones and ground robots, including quadrupeds, for the EU's rescEU stockpile. It is a civil-protection buyer using open tender, with a decision expected in March 2027.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.