U.S. Targets Iranian Digital-Asset Network in New Sanctions Action
Operation Economic Outcast focuses on BitBank, its developer and three individuals Washington says are linked to sanctions-evasion activities
Washington, September 17, 2026: The United States has announced a new sanctions action targeting an Iranian digital-asset network that Washington says has been used to facilitate sanctions evasion and transfer funds linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The action, announced under Operation Economic Outcast, targets two entities and three individuals, according to the U.S. Department of State and the Department of the Treasury. (U.S. Department of the Treasury)
BitBank at the Centre of the Action
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) designated BitBank, described by Treasury as a digital-assets venture controlled by Iranian financier Babak Zanjani.
Also designated was Pishtaz Simorgh Electronic Trade Company, identified by Treasury as the developer of BitBank’s digital-asset software. Three individuals associated with Zanjani’s network—Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein and Seyed Adel Heidari—were also targeted. (U.S. Department of the Treasury)
According to Treasury, BitBank was used between June and July 2026 to facilitate the transfer of hundreds of millions of dollars in Bitcoin to the IRGC. These allegations form part of the U.S. government’s stated basis for the sanctions.
Washington Warns Digital-Asset Sector
The U.S. State Department said the action highlights concerns over the use of international digital-asset platforms as gateways to the global financial system by Iranian state-linked entities.
Washington has called on governments and private-sector companies, particularly those operating in the digital-assets industry, to strengthen vigilance against the potential misuse of their platforms for sanctions evasion.
The State Department said the United States intends to continue efforts to restrict Iranian government and IRGC access to financial resources that Washington says support activities threatening regional and international security.
Sanctions Consequences
Under the sanctions announced by OFAC, property and interests in property belonging to the designated entities and individuals that fall under U.S. jurisdiction are blocked. U.S. persons are generally prohibited from conducting transactions involving the designated parties unless an exemption or specific authorization applies. (U.S. Department of the Treasury)
The Treasury Department said the latest measures use authorities under Executive Order 13902, which provides sanctions authority concerning Iran’s economy, including its digital-assets sector.
Operation Economic Outcast was announced by Treasury Secretary Scott Bessent on August 24, 2026, as a broader U.S. campaign aimed at disrupting Iranian financial networks and channels that Washington says support sanctions evasion and illicit revenue generation. (U.S. Department of the Treasury)
By Suman Munshi, IBG NEWS
