US Sanctions BitBank Over Alleged IRGC Bitcoin Transfers

Iran has increasingly used digital assets and shadow-banking networks to preserve access to the global financial system despite Western sanctions. Washington says those channels have helped the Islamic Revolutionary Guard Corps, or IRGC, finance sanctioned activity and move funds across borders. The latest measures against Shelbit Exchange and Aban Tether form part of the U.S. Treasury Department’s “Economic Fury” campaign, underscoring the growing role of crypto platforms in sanctions enforcement and anti-money-laundering scrutiny.

The Treasury’s Office of Foreign Assets Control imposed sanctions on Aug. 7, 2026, targeting Georgia-based SHPS Shelbit, which operates Shelbit Exchange; UAE-based operator Shelbit General Trading LLC; and Iran-based Aban Tether. Treasury said IRGC wallets sent more than $1 million to Shelbit addresses, while more than $2 million flowed back to IRGC wallets. Addresses controlled by Shelbit operator Siavash Kayvanpour also sent over $2 million to sanctioned exchange Nobitex; Aban Tether processed millions involving previously blacklisted Iranian platforms.

Iran’s exclusion from much of the global banking system has pushed government-linked entities and businesses toward stablecoins and offshore exchanges. A Reuters investigation found that unlicensed Dubai operator Shelbit processed at least $4 billion since May 2024 through a network spanning online gambling, cryptocurrency mining and sanctioned Iranian institutions. The findings underscore how digital assets can provide cross-border liquidity outside traditional financial controls.

Reuters reported on July 31, 2026, that wallets linked to Shelbit sent at least $676 million to Binance, while about $125 million was connected to the Central Bank of Iran and roughly $20 million came from a suspected mining operation. Dubai’s Virtual Assets Regulatory Authority fined Shelbit and ordered it to halt unlicensed activities on July 24. The U.S. Treasury’s OFAC sanctioned Shelbit and Iran-based Aban Tether on Aug. 7.

The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying roughly a fifth of seaborne oil. Under pressure from Western sanctions and dollar-based financial controls, Iran has sought to turn passage fees into mandatory maritime insurance and settle payments in Bitcoin and other digital assets. The structure matters because it links sanctions evasion and IRGC financing to commercial shipping, exposing shipowners, insurers and financial institutions to U.S. penalties even when payments bypass traditional banks.

The U.S. Treasury Department’s Office of Foreign Assets Control on July 29 sanctioned Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, saying they operated an IRGC-backed scheme forcing vessels to buy coverage for Hormuz transit. Treasury said Hormuz Safe accepts Bitcoin and other digital assets and also blocked eight shadow-fleet tankers; OFAC has sanctioned more than 100 Iran-linked vessels this year. Iranian media said in May the platform could generate more than $10 billion annually, though that projection was not independently verified.

The United States has long used financial sanctions to restrict Iran’s access to dollars and cross-border payment services, prompting local businesses to turn to cryptocurrency. TRM Labs tracked about 60 wallets linked to sanctioned Iranian entities. Their transactions involved CoinEx and Nobitex, highlighting sanctions-compliance and anti-money-laundering risks at centralized exchanges.

A TRM Labs report said the wallets had moved more than $3.84 billion in cryptocurrency through CoinEx since 2019. About $2.7 billion, or roughly 70% of the total, went to Nobitex, Iran’s largest domestic exchange. CoinEx subsequently denied serving as a funding gateway for sanctioned Iranian crypto companies, leaving the two sides at odds over the exchange’s responsibility.

Iran has long faced U.S. financial sanctions and limited access to SWIFT, prompting government agencies and private-sector users to turn to crypto assets for cross-border transfers. Chainalysis estimated that Iran’s crypto ecosystem reached $7.78 billion in 2025. Addresses linked to the Islamic Revolutionary Guard Corps, or IRGC, received more than 50% of the value in the fourth quarter, making exchanges a key focus of U.S. efforts to shut down sanctions-evasion channels.

The U.S. Treasury Department’s Office of Foreign Assets Control, or OFAC, sanctioned Nobitex, Wallex, Bitpin and Ramzinex on June 2, 2026. Nobitex handled more than 50% of Iran’s digital-asset inflows in 2025 and helped the Central Bank of Iran acquire hundreds of millions of dollars in stablecoins. OFAC also sanctioned senior executives, including Nobitex chairman and co-founder Amir Hossein Rad.

Iran has long faced restrictions on U.S. dollar settlement and sanctions targeting its access to international banks. In recent years, it has turned to stablecoins such as USDT, over-the-counter dealers and P2P channels to move oil revenue and cross-border funds. The U.S. Treasury’s inclusion of cryptocurrency channels in its “maximum pressure” framework marks an expansion of sanctions beyond banks, oil tankers and specific wallets to stablecoin on- and off-ramp networks and their financial intermediaries.

On April 29, 2026, U.S. Treasury Secretary Scott Bessent announced six areas of action against Iran, including “cryptocurrency access channels” for the first time, and said tens of billions of dollars in revenue had been blocked. Separately, OFAC added 17 individuals and 18 entities to its sanctions list on April 28. United Nations data showed shipping traffic through the Strait of Hormuz fell 95.3% after February 28, while European crude oil prices rose 53% over the same period.