Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
European Tech Sovereignty
22OCT

BitBank and Zanjani hit by US sanctions

2 min read
17:24UTC

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
European Centre for International Political Economy
European Centre for International Political Economy
ECIPE found nine states gave about 97% of awarded cloud lots to home providers from 2018 to 2025, and every sovereignty-framed lot went to a domestic supplier. The think tank reads sovereignty clauses as a home-bias tool that narrows competition, with a 46% sole-bidder rate on a small sample.
Mistral AI
Mistral AI
Mistral opened a Munich industrial AI hub on 28 September with BMW and Siemens Energy work, and Germany's digital minister Karsten Wildberger praised it on the launch page. The French lab gains a German ministerial endorsement while its 21 October Nvidia partnership ties the work to US accelerators.
AWS European Sovereign Cloud
AWS European Sovereign Cloud
AWS will run its Brandenburg region for several hours on 24 October cut off from the AWS global backbone, with an EU-resident team. AWS says the test follows BSI's C3A criteria and will give regulators and customers verifiable evidence of separation.
Greenland government
Greenland government
Greenland signed a joint declaration with the EU and Denmark in September and received Virkkunen on 24 and 25 September. The Arctic Strategy now backs a cable linking Greenland directly to Europe, an alternative to Greenland Connect, which lands in Canada and Iceland.
Greek government
Greek government
Kyriakos Mitsotakis inaugurated DAEDALUS at Lavrion on 19 October, a €36m machine on Nvidia GH200 chips that anchors the PHAROS AI Factory. Athens paid 65% through Greece 2.0, making national recovery money the main funder of an EU AI Factory.
ASML
ASML
ASML reported record quarterly sales of €11.66bn and said planned supply for 2027 and 2028 will not fully meet demand. It plans about 30% more capacity in 2027, and some customers want to book for 2029 and 2030.

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