Key Highlights
- OFAC sanctioned two UK crypto exchanges for helping Iran and the IRGC move money, marking a first-of-its-kind crackdown on digital platforms.
- Blockchain data shows Iran used crypto exchanges and wallets to dodge sanctions and quietly move billions across borders.
- The U.S. is tightening pressure on Iran by targeting crypto networks, officials, and exchanges tied to human rights abuses.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against two UK-registered cryptocurrency exchanges for processing Iranian transactions. On January 30, OFAC designated Zedcex Exchange Ltd. and Zedxion Exchange Ltd. for operating in Iran’s financial sector and facilitating cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC).
According to the official release, this is the first time that digital asset exchanges are being sanctioned for their Iran-related financial activities. In the report, Secretary of the Treasury Scott Bessent highlighted the use of digital assets by the Iranian regime, saying, “Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian families to banks and financial institutions around the world.”
Chainalysis on-chain data shows Zedcex Exchange Ltd., founded in August 2022, processed over $94 billion in transactions. Zedxion Exchange Ltd., registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as its director.
Both exchanges allegedly form part of a network designed to evade sanctions and launder money for Iranian state interests. Bessent added, “Rather than build a prosperous Iran, the regime has chosen to squander what remains of the nation’s oil revenues on nuclear weapons development, missiles, and terrorist proxies.”
Digital asset networks and IRGC links
OFAC’s designations include seven Tron (TRX) addresses linked to Zedcex Exchange Ltd., some of which Israel’s NBCTF previously identified as controlled by the IRGC. The addresses include TCA9..xJAv and TGsN..vmEx. Chainalysis data reveal that Zedcex wallets regularly interacted with Iranian exchanges, sanctioned groups, and even legitimate services. This shows a clear, intentional effort by Iranian actors to use cryptocurrencies to bypass sanctions.
Babak Morteza Zanjani, who was sentenced to death in Iran for embezzling billions of dollars, is now a financial sponsor for major infrastructure projects. The OFAC refers to him as an “Iranian businessman and sanctions evader.” His involvement with the exchanges points to complex operations involving digital currencies. Therefore, the sanctions are aimed at disrupting this financial flow and cutting off the IRGC’s funding.
Iran’s broader crypto exploitation
Iranian authorities are also employing cryptocurrency to circumvent sanctions. In 2025, OFAC designated over 875 individuals and entities for sanctions evasion charges. The Iranian Central Bank purchased $507 million worth of USDT through UAE Dirhams in April 2025 to prop up the Rial and maintain international trade.
After a $90 million hack at Nobitex in June, Iran shifted its USDT through different blockchain networks, changing tokens along the way. On top of that, OFAC has previously sanctioned IRGC-linked individuals and Houthi financiers. These cases show that Iran and its proxies are consistently using cryptocurrencies to move money around illegally.
These latest sanctions also target six Iranian officials tied to human rights abuses, including Interior Minister Eskandar Momeni Kalagari and IRGC commanders involved in violent crackdowns. The moves show the U.S. is using economic pressure to punish wrongdoing and stop sanctions evasion.
OFAC’s move shows that the world is watching cryptocurrency exchanges more closely. Exchanges now need to strengthen their identity checks and keep a close eye on risky transactions. Doing this stops illegal money flows and also keeps the crypto safer and prevents bad actors from misusing it.
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