U.S. Sanctions Iran’s BitBank Over Bitcoin Transfers

| odaily.news
The U.S. Treasury has sanctioned Iran-based BitBank, alleging that the exchange helped process and transfer hundreds of millions of dollars in Bitcoin linked to Iran’s financial networks and the Islamic Revolutionary Guard Corps (IRGC). The Office of Foreign Assets Control (OFAC) said Bitcoin payments connected to vessels under the Hormuz security insurance plan were transferred to the IRGC as of June. Treasury officials also alleged that a network linked to Iranian financier Babak Zanjani used BitBank to move substantial Bitcoin funds. The sanctions cover BitBank, its developer Pishtaz Simorgh Electronic Trade Company and three executives linked to Zanjani. The action follows earlier U.S. sanctions on other Iranian exchanges, including Nobitex, Wallex, Bitpin and Ramzinex. Treasury Secretary Scott Bessent said Bitcoin payment channels remain subject to OFAC oversight. The BitBank sanctions increase compliance, counterparty and enforcement risks for crypto exchanges and traders handling Iran-linked flows. Traders should monitor sanctioned addresses, exchange restrictions and further enforcement. The measures do not change Bitcoin’s network or protocol, so the direct impact on BTC prices may remain limited.
Neutral
The direct price impact on BTC is likely neutral. The sanctions may create short-term negative sentiment and prompt traders to reduce exposure to Iran-linked exchanges, addresses and counterparties. This could cause isolated liquidity or flow disruptions, but the announcement does not target Bitcoin’s protocol, mining system or core network. Over the longer term, stronger OFAC enforcement could increase compliance costs, restrict certain exchange channels and encourage more transaction screening. These developments may affect regional liquidity and institutional risk appetite, but they are unlikely by themselves to materially alter global BTC supply, demand or network fundamentals. Historical sanctions announcements have generally produced limited and temporary effects on Bitcoin prices unless they are accompanied by broader market stress or major restrictions on global trading infrastructure.