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The US Treasury has taken the unprecedented step of blacklisting two UK-registered cryptocurrency exchanges for processing funds linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
It marks the first time entire digital asset platforms have been sanctioned under Iran-specific financial measures.
On January 30, 2026, the Office of Foreign Assets Control (OFAC) designated Zedcex Exchange Ltd. and Zedxion Exchange Ltd., citing their role in facilitating nearly $1 billion in IRGC-related transactions, primarily through Tether (USDT) on the Tron network.
Since its registration in August 2022, Zedcex alone has processed over $94 billion in total transactions, highlighting the scale of the exchange’s operations.
Reportedly, the exchanges are tied to Babak Morteza Zanjani, an Iranian businessman previously convicted of embezzling billions from Iran’s National Oil Company.
Treasury officials allege that after Zanjani’s death sentence was commuted in 2024, he resumed financial activity to launder funds for the Iranian regime and support IRGC-linked projects.
“Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people,” said Treasury Secretary Scott Bessent. “This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations.”
The sanctions form part of a broader crackdown on Iranian officials and networks accused of violently repressing protesters. Senior figures targeted include Interior Minister Eskandar Momeni Kalagari and several IRGC commanders.
Independent estimates suggest that as many as 30,000 protesters have died during recent crackdowns. Authorities reportedly use mass burials and clandestine medical networks to conceal fatalities.
The US Treasury’s action highlights the growing use of crypto as a tool to bypass sanctions and fund illicit operations.
Elliptic reported Iran’s Central Bank acquired over $507 million in USDT in 2025. They used stablecoins to stabilize the plummeting rial and maintain foreign trade, circumventing traditional banking restrictions.
The Washington Post, citing blockchain intelligence firm TRM Labs, observed that more than half of the exchanges’ transaction volume in 2023 was linked to IRGC-associated entities. This illustrates how state-backed actors increasingly leverage digital assets.
Alongside freezing all assets held by sanctioned parties in the US, the measures bar Americans from conducting business with Zedcex, Zedxion, Zanjani, and other designated individuals or entities.
Civil and criminal penalties for violations are severe, reflecting the US commitment to blocking illicit finance in the digital asset space.
These sanctions also signal a historic shift in enforcement strategy. They show that rather than targeting individual wallets or transactions, US authorities are now sanctioning entire crypto platforms to disrupt systemic financial networks used for sanctions evasion and terror financing.
With over 875 Iranian persons, vessels, and aircraft already sanctioned in 2025 for destabilizing activities, OFAC’s latest move demonstrates the increasingly sophisticated interplay between digital assets and global security policy.
As crypto continues to integrate into international finance, authorities are expanding their reach, emphasizing that exchanges operating outside traditional jurisdictions can no longer assume immunity when facilitating illicit flows for sanctioned states or entities.
