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Iran Conflict 2026
6AUG

BitBank and Zanjani hit by US sanctions

2 min read
15:43UTC

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.

ConflictAssessed
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 Outcast 1. 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
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Causes and effects
Different Perspectives
Shipping and insurance industry
Shipping and insurance industry
UKMTO counted about 20 US-facilitated Hormuz transits a day to 11 September against only 6 visible on AIS, with traffic still around 90% below the 138-a-day pre-war baseline. War-risk underwriters cannot price hulls they cannot see, or resolve whether the tanker El Gaia hit a mine, as Iran claims, or a missile and drone, as CENTCOM says.
European refiners
European refiners
European refiners, including Poland's Orlen, absorbed a roughly $26 gap between Dated Brent at $130.80 on 15 September and ICE Brent futures settling at $103.87 on 18 September, a spread that widened from $13.45 on 9 September rather than newly opening. Their futures hedges no longer cover what they now pay for physical barrels.
Saudi Arabia
Saudi Arabia
Saudi Aramco zeroed European term customers' October allocations and rerouted roughly 60 million barrels to Asia through Ras Tanura and Sohar, using Red Sea and Gulf terminal capacity built years ago to cut Hormuz exposure. Riyadh reallocated existing supply rather than negotiating a shortfall with Europe.
Qatar
Qatar
Qatar's energy minister Saad al-Kaabi told Bloomberg at the Qatar Economic Forum on 20 September that Bessent's two-year Hormuz-obsolescence forecast is wrong, and that Doha has deliberately built no bypass pipeline. Qatar's gas exports run through one waterway by choice, not oversight.
Iran (foreign ministry and Majlis)
Iran (foreign ministry and Majlis)
Iran's foreign ministry and 130 Majlis deputies moved toward NPT withdrawal this week, with lawmaker Hossein-Ali Haji Deligani filing a triple-urgency bill on 20 September that Speaker Qalibaf has not yet scheduled. Tehran treats treaty membership as leverage still on the table, not yet spent.
Russia and China
Russia and China
Moscow and Beijing vetoed the Panel of Experts' renewal, maintaining Resolution 2231 lapsed in October 2025 and the 2025 snapback was never validly triggered, so the sanctions architecture the Panel enforces has no current legal standing. Both governments frame the veto as upholding law, not shielding Tehran.