US sanctions pressure is moving deeper into cryptocurrency infrastructure tied to Iran’s financial networks.
The latest action targets service providers rather than focusing only on individual blockchain addresses.
Officials say the approach aims to disrupt firms helping sanctioned actors move funds through digital assets.
The shift also increases compliance risks for foreign exchanges, brokers, banks, and infrastructure companies handling Iran-linked activity.
Treasury targets BitBank and Zanjani network
The U.S. Treasury’s Office of Foreign Assets Control sanctioned BitBank on September 17 under Operation Economic Outcast.
Treasury described BitBank as an Iranian exchange controlled by sanctioned financier Babak Zanjani. Between June and July, Treasury said Zanjani used BitBank to transfer hundreds of millions of dollars in Bitcoin. The agency said the funds went to the Islamic Revolutionary Guard Corps.
OFAC also designated BitBank developer Pishtaz Simorgh Electronic Trade Company and three Zanjani associates.
They were Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
Treasury said the companies and executives formed part of Iran’s digital-asset sanctions-evasion infrastructure. Secretary Scott Bessent said cryptocurrency financing for Iran remained within OFAC’s enforcement reach.
Treasury said Hormuz Safe Marine Services Authority has used BitBank since June to transfer payments to Iran.
Zanjani received a death sentence in Iran in 2016 over embezzlement involving the National Iranian Oil Company. Iran commuted that sentence in 2024, and Treasury said he later returned to regime-linked business projects.
Investigations also linked Zanjani to Zedcex and Zedxion, two UK-registered cryptocurrency exchanges. OCCRP reported that the network used a fictitious executive represented with stock footage. TRM Labs estimated the exchanges processed about $1 billion in funds linked to the IRGC.
Operation economic outcast widens foreign crypto exposure
Treasury launched Operation Economic Outcast on August 24 and targeted nearly 60 Iran-linked entities, people, and vessels. TRM Labs said OFAC issued five sectoral determinations under Executive Order 13902. Those determinations covered digital assets, technology, gold, aviation, and shipping.
The digital-assets determination expands secondary sanctions exposure beyond listed wallets and named companies. Treasury warned that entities facilitating Iranian sanctions evasion could lose access to the U.S. financial system. The risk extends to non-U.S. exchanges, OTC desks, banks, and infrastructure providers handling significant Iranian transactions.
Earlier enforcement targeted Zedcex and Zedxion in January, followed by major Iranian exchanges in June. Treasury later sanctioned Shelbit and Aban Tether in August as pressure on Iran’s crypto sector increased.
However, blockchain data suggests tougher enforcement may redirect activity instead of eliminating it. Chainalysis said IRGC-linked addresses represented more than half of Iran’s crypto value received during fourth-quarter 2025. Those addresses received more than $3 billion during 2025, according to the firm.
TRM Labs found nearly 95% of 2025 inflows to sanctioned entities and jurisdictions used stablecoins. Centralized-exchange flows fell nearly 30%, while high-risk, no-KYC, and decentralized-service flows increased more than 200%.
FATF also found uneven global enforcement. Its 2026 survey showed 91 of 109 jurisdictions had passed Travel Rule legislation. Yet 55 of those 91 jurisdictions had not taken focused supervisory or enforcement action. Those gaps can leave room for flows to shift toward weaker jurisdictions and harder-to-monitor services.
