Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Drones: Industry & Defence
26OCT

BitBank and Zanjani hit by US sanctions

2 min read
15:07UTC

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
Nigerian Air Force
Nigerian Air Force
The air force listed 12 Turkish Aksungur and two Chinese CH-4D armed drones on 25 October. No contract has been published, so these are plans.
Civilians in Western Sahara
Civilians in Western Sahara
A UN report of October 2023 records allegations of Moroccan drone strikes east of the berm. An aerial strike there in November 2022 reportedly killed six civilians, the UN said, citing Polisario and local media.
Thunder Tiger
Thunder Tiger
The Taichung company said on 16 October that all 1,520 of its Gauntlet I attack drones passed inspection. Its MoU with AeroVironment covers fitting Switchblade to its uncrewed boats and ground vehicles and exploring joint production in Taiwan.
EDGE Group
EDGE Group
The Emirati group said on 9 October it will supply glide bombs and guidance kits for the Royal Moroccan Air Force's armed drones. A separate memorandum explores making small arms and aero engines in Morocco.
Rajnath Singh
Rajnath Singh
India's Defence Acquisition Council, which he chairs, approved about Rs 2.12 lakh crore of proposals on 26 October, including kamikaze drones and tank-mounted counter-drone systems. About 82 per cent of the value is to go to Indian industry, by the ministry's account.
Kongsberg
Kongsberg
The Norwegian group said on 13 October it will invest more than 200m zlotys in a Pomeranian plant to build and maintain SAN counter-drone systems. It expects series output to begin in the first half of 2028.

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