Treasury Sanctions Crypto Exchange Behind Iran’s Bitcoin Tolls on Hormuz Ships

The U.S. Department of the Treasury has issued sweeping sanctions against an Iranian cryptocurrency exchange identified as the financial backbone of a digital toll scheme imposed on commercial vessels transiting the Strait of Hormuz. According to Treasury officials, the exchange, known as BitBank, processed substantial volumes of Bitcoin tied directly to payments demanded from shipping companies seeking safe passage through one of the world’s most strategically sensitive maritime corridors.

The sanctions stem from an investigation revealing that Iran’s Islamic Revolutionary Guard Corps, through a front entity called the Hormuz Safe Marine Services Authority, had begun charging ships for what it described as “digital insurance.” This insurance was marketed as a protective fee against regional threats, yet U.S. officials argue that the risks were largely manufactured by Iran itself. Beginning in mid‑2026, vessels were instructed to remit these fees in Bitcoin, stablecoins, or traditional payment methods, with the cryptocurrency flows routed through BitBank. Treasury assessments indicate that hundreds of millions of dollars in Bitcoin moved through the exchange in just a matter of weeks, underscoring the scale of the operation.

BitBank is controlled by Babak Zanjani, a well‑known Iranian financier long associated with sanctions‑evasion networks. Zanjani’s history includes a conviction for embezzlement from Iran’s National Oil Company, a death sentence later commuted, and a reemergence as a central figure in several regime‑linked ventures. His involvement in BitBank places the exchange squarely within a broader ecosystem of covert financial platforms designed to circumvent international restrictions. Treasury officials describe BitBank as a priority digital asset project within Zanjani’s network, highlighting its role in facilitating illicit state revenue.

The sanctions extend beyond BitBank itself. The Treasury designated the software developer behind the exchange, Pishtaz Simorgh Electronic Trade Company, as well as several individuals tied to Zanjani’s operations. These actions were taken under Executive Order 13902, which was recently expanded to cover participants in Iran’s digital asset sector. The move reflects Washington’s growing focus on cryptocurrency infrastructure as a vector for sanctions evasion, particularly in states with limited access to traditional financial systems.

This enforcement action forms part of a larger campaign aimed at dismantling Iran’s digital‑asset‑based financial architecture. In recent years, the United States has targeted multiple Iranian crypto exchanges, including Nobitex, Wallex, Bitpin, and Ramzinex, all of which were implicated in facilitating transactions for sanctioned entities. Treasury officials emphasize that the use of digital assets does not place Iranian financial activity beyond regulatory reach, and that the U.S. intends to continue disrupting platforms that enable the regime’s revenue generation.

The Strait of Hormuz remains one of the most critical chokepoints in global energy logistics, with a significant portion of the world’s seaborne oil passing through its narrow waters. Iran’s attempt to monetize maritime transit through Bitcoin‑denominated tolls represents a fusion of geopolitical leverage and digital finance. By imposing fees on vessels and channeling payments through a controlled crypto exchange, the Iranian government sought both to assert regional dominance and to generate revenue outside the traditional banking system.

The Treasury’s sanctions aim to sever this financial pipeline and deter further attempts to use cryptocurrency as a tool for coercive state policy. The action signals a broader recognition that digital asset platforms can serve as extensions of geopolitical influence, particularly when controlled by actors seeking to evade international oversight. As global maritime and financial systems continue to intersect with emerging technologies, the Strait of Hormuz case illustrates how digital currencies can become entangled with national security concerns.