On September 17, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced that it had designated BitBank, a cryptocurrency exchange affiliated with Iranian financier Babak Zanjani, as a target for sanctions. The treasury department alleges that the platform was used to funnel hundreds of millions of dollars’ worth of Bitcoin to the Iranian Revolutionary Guard Corps.
Bitbank
BitBank is a cryptocurrency platform that allows users to trade and transfer virtual assets, notably Bitcoin, XRP, and Ethereum. According to BitBank, it “uses proprietary security that has resulted in zero hacking incidents since its founding. It implements thorough security measures to protect our customers’ assets.”
BitBank was founded in Japan. In 2025, Forbes magazine included the exchange in the ranking of “World’s Most Trustworthy Crypto Exchanges.” It oversees over 8 billion yen in capital, and it is associated with the following entities:
- Japan Crypto Asset Exchange Association
- Japan Crypto Asset Business Association (General Incorporated Association)
- Japan Digital Decentralized Finance Association (General Incorporated Association)
- JPCrypto-ISAC General Incorporated Association Member of the Japan Money Lending Association No. 006169, and
- Japan Credit Information Corporation (JICC) Japan Internal Audit Association (General Incorporated Association)
Association with Iranian Terrorist Activities are Sanctionable: Treasury Department
Finance secretary Bessent stated that “if you support the Iranian regime, the treasury department will impose sanctions”. The increased vigilance on cross-border transfers by individuals and entities towards Iran’s proponents of war is U.S.’s response to combatting the financing of terrorism. Although cryptocurrency transfers are, by nature, hard to trace, several bodies are on constant watch—and evolving in reach and capability. The Federal Bureau of Investigation leads the charge, and the Treasury Department orders the sanctions.
BitBank Response
However, a spokesperson for Bitbank Inc., which operates the cryptocurrency exchange ‘bitbank’ in Japan, stated that “Bitbank Inc. is a cryptocurrency exchange operator operating the cryptocurrency exchange ‘bitbank’ in Japan, and it is a separate entity and service from the Iranian crypto asset exchange designated as a sanction by OFAC. There is no capital or business relationship between us and our company, and we are not subject to this sanction.”
