New pressure on Iran: the US sanctions crypto exchanges Zedcex and Zedxion

International regulators continue to crack down on attempts by Iranian authorities and terrorist-linked organizations to evade sanctions. The United States has identified two new counterparties that allegedly helped Iran conduct illicit cryptocurrency transactions. GetBlock AML Research details the new sanctions and provides a brief overview of the current state of Iran’s crypto market.

Key Facts

• The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two UK-registered cryptocurrency exchanges, Zedcex and Zedxion. The move cites their involvement in Iran’s financial sector and transactions carried out on behalf of the IRGC.
• As part of the action, OFAC also designated seven Tron (TRX) wallet addresses linked to Zedcex. According to available data, the platform has processed more than $94 billion in transaction volume since its launch in August 2022.
• This marks the first time OFAC has sanctioned cryptocurrency exchanges specifically for operating within Iran’s financial system.
• Both platforms are linked to Iranian businessman Babak Morteza Zanjani, who was previously sentenced to death in Iran for embezzling billions of dollars from the National Iranian Oil Company.
• The sanctions are part of a broader campaign targeting Iranian officials involved in human rights abuses and the violent suppression of protests.

Sanctions on Cryptocurrency Exchanges

On January 30, 2026, OFAC added two UK-registered crypto exchanges — Zedcex Exchange Ltd. and Zedxion Exchange Ltd. — to its sanctions list.

According to US authorities, the exchanges operated within Iran’s financial sector and processed cryptocurrency transactions on behalf of the IRGC, which the United States designates as a terrorist organization.

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This is the first instance in which OFAC has directly sanctioned crypto exchanges for their role inside Iran’s domestic financial system.

Exchanges Linked to the IRGC

Based on OFAC data and blockchain transaction analysis, both platforms handled significant volumes of funds connected to entities affiliated with the IRGC.

Zedcex Exchange Ltd., registered in August 2022, is estimated to have processed transactions totaling more than $94 billion since its launch.

Zedxion Exchange Ltd., registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as a director.

Taken together, the evidence suggests that both exchanges were part of a broader infrastructure designed to bypass international sanctions and launder funds for the Iranian state, primarily benefiting the IRGC.

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Commenting on the sanctions, US Treasury Secretary Scott Bessent said the Iranian regime is increasingly using digital assets to evade sanctions and finance illicit activities, including cybercrime. He added that Iranian authorities are rapidly moving funds stolen from their own citizens into financial institutions around the world.

Babak Morteza Zanjani: From Death Sentence to Sanctions Lists

The connection between the exchanges and Babak Morteza Zanjani adds particular weight to the case. In 2013, he was placed on the OFAC sanctions list as a financial intermediary for the IRGC. His name was temporarily removed in 2016 following sanctions relief tied to the Iran nuclear deal.

That same year, Zanjani was sentenced to death in Iran for embezzling billions of dollars from the National Iranian Oil Company. In 2024, the sentence was reduced, and by April 2025 he had re-emerged publicly as a financial investor in one of the country’s largest railway projects.

OFAC describes Zanjani as an “Iranian businessman and sanctions evasion specialist” with interests spanning hospitality, transportation, technology, financial services, and oil exports. His links to cryptocurrency exchanges point to a sophisticated, multi-layered strategy for using digital assets to circumvent international restrictions.

Fund Flows Through Linked Crypto Addresses

As part of the sanctions against Zedcex Exchange Ltd., OFAC also designated seven Tron (TRX) wallet addresses.

Notably, some of these wallets match addresses that Israeli authorities linked to IRGC control in September 2025.

Transaction analysis shows active interaction between these wallets and Iranian crypto services, other sanctioned entities, and international financial platforms.

Links between Zedcex, other Iranian crypto exchanges, and Russia-based Garantex. Visualization: Chainalysis

Iran’s Use of Crypto to Evade Sanctions

The latest sanctions fit into a broader and consistent trend: Iranian state-linked entities are increasingly turning to cryptocurrencies to bypass international restrictions and fund illicit activities.

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While OFAC has previously sanctioned individuals and organizations tied to crypto-related offenses, this is the first case where measures directly target crypto exchanges operating within Iran’s financial sector.

Earlier cases include:

• September 2025: OFAC sanctioned Iranian nationals Alireza Derakhshan and Arash Estaki Alivand for coordinating over $100 million in crypto purchases linked to Iranian oil sales between 2023 and 2025.
• The same month, Israeli authorities published a list of dozens of IRGC-controlled crypto wallets with a combined turnover exceeding $2 billion.
• April 2025: OFAC sanctioned eight crypto wallets with nearly $1 billion in volume used to finance weapons and logistics for Yemen’s Houthi movement and to evade sanctions.
• December 2024: OFAC expanded sanctions against Houthi financier Sa’id al-Jamal, adding crypto wallets used for money laundering and illicit Iranian oil trading.

A Broader Campaign Against Iranian Officials

The sanctions against the crypto exchanges are part of a wider campaign targeting Iranian officials involved in human rights violations. At the same time, OFAC sanctioned six Iranian officials linked to the IRGC and domestic law enforcement for their role in the violent suppression of protests.

Those designated include Iran’s Interior Minister Eskandar Momeni Kalagari, who oversees law enforcement agencies, as well as several IRGC commanders responsible for regions where security forces killed protesters, including children.