Iranian tycoon Babak Zanjani linked to crypto scheme bypassing sanctions on Hormuz traffic
Babak Zanjani, a controversial Iranian businessman, is accused of using the crypto exchange BitBank to funnel payments for alleged tolls on ships passing the Strait of Hormuz.
The U.S. Treasury revealed sanctions against BitBank, an Iranian cryptocurrency exchange connected to businessman Babak Zanjani. According to the announcement, BitBank facilitated the transfer of payments received by two companies, one being the Hormuz Safe Marine Authority, which were meant to serve as "toll" fees for ships navigating the Strait of Hormuz. While Iranian officials claim no official toll exists, they reportedly sell safety assurances to transiting vessels.
Zanjani, once condemned to death in Iran for a corruption case, has reportedly returned to influential circles as Iran seeks ways to circumvent international sanctions. The move underscores Tehran's reliance on digital currencies to move restricted funds. The sanctions aim to cut off this financial lifeline and pressure Iran's maritime revenue strategies.
Why it matters
It shows how Iran may use crypto to evade sanctions and fund its strategic maritime activities.
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