US Imposes Sanctions on Cryptocurrency Exchange Tied to Iranian Billionaire Babak Zanjani Over Strait of Hormuz Tolls

The US has sanctioned a cryptocurrency exchange owned by an Iranian billionaire, accusing it of processing shipping toll payments to navigate the Strait of Hormuz. BitBank allegedly routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps (IRGC) after accepting cryptocurrency payments for the Hormuz Safe Marine Services Authority, which operates the Tehran tollbooth.

The exchange is controlled by Babak Zanjani, 52, who previously received a death sentence in 2016 for embezzling millions from the state-owned National Iranian Oil Company. His sentence was later commuted in 2014, and by 2025, he re-emerged publicly as a backer of regime-linked projects aimed at evading sanctions. Additional sanctions were introduced in July against nine other firms involving Mr Zanjani, including his Iran-based Dot One conglomerate.

The US Department of the Treasury’s Office of Foreign Assets Control (Ofac) announced the measures, stating that Mr Zanjani utilized BitBank to facilitate the transfer of hundreds of millions of dollars’ worth of Bitcoin to the IRGC starting in June. Scott Bessent, US Secretary of the Treasury, emphasized that efforts to finance the Iranian regime using cryptocurrencies remain vulnerable to Ofac intervention, warning that supporters of the Iranian regime will face Treasury sanctions.

Sanctions were also applied to Pishtaz Simorgh Electronic Trade Company, the software developer behind BitBank, along with Dit One executives Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari, who are associates of Mr Zanjani. These actions form part of Operation Economic Outcast, a US initiative designed to isolate Iran economically and disrupt its global financial, commercial, and logistical networks.

Iran initially indicated in March its plan to charge fees for safe passage through the Strait of Hormuz, connecting the Arabian Gulf and the Indian Ocean, utilizing two front companies to secure cryptocurrency payments. Mr Zanjani gained notoriety during the administration of president Mahmoud Ahmadinejad between 2005 and 2013 for evading sanctions and channeling hard currency from oil sales.

The US Treasury noted that Mr Zanjani's enterprises operate as both public commercial ventures and covert financial platforms facilitating sanctions evasion. In January, the US sanctioned Mr Zanjani alongside UK-based crypto exchanges Zedcex and Zedxion for funding the IRGC. Since its registration in August 2022, Zedcex has processed over $94 billion in transactions.

Mr Zanjani’s current business activities include an $800 million rail contract awarded to Dot One by the Iranian government, alongside ventures in aviation and the launch of Dot One Airlines, which has also faced US sanctions. Meanwhile, the UK is increasing pressure by tightening restrictions on Iranian banks, including Bank Sepah, Melli Bank plc, Bank Saderat, Persia International Bank, and Bank Tejarat, as part of the broader US-led economic campaign.