US Treasury Sanctions UK Crypto Exchanges Linked to Iran’s IRGC Financial Networks

TLDR:

• UK crypto exchanges Zedcex and Zedxion sanctioned for moving $389M for Iran’s IRGC. 
• Ex-oil tycoon Babak Zanjani backs IRGC projects after early prison release. 
• Iranian security forces killed hundreds; Treasury targets top officials for brutality. 
• US persons must block all property and halt transactions with designated actors.

The US Treasury’s OFAC has taken action against Iran-linked UK crypto exchanges Zedcex and Zedxion for helping the regime evade sanctions. Seven Iranian officials, including IRGC commanders, and businessman Babak Zanjani were also designated. 

The targeted addresses processed over $389 million, marking the first time digital asset exchanges were sanctioned for involvement in Iran’s financial sector.

First-Ever Sanctions on IRGC-Linked Crypto Exchanges

The US Treasury has, for the first time, targeted digital asset exchanges connected to Iran’s Islamic Revolutionary Guard Corps (IRGC). UK-based Zedcex and Zedxion, both tied to businessman Babak Zanjani, were flagged for processing transactions for IRGC-linked wallets. 

Zedcex, registered in 2022, has processed over $94 billion in transactions, while Zedxion initially listed Zanjani as its director. These sanctions mark a shift in Treasury strategy.

It highlights how digital assets can be exploited to bypass international sanctions. Zanjani, previously sentenced to death in Iran for embezzling billions in oil revenue, was released in 2024

He then allegedly financed IRGC-backed projects, including major railway and infrastructure investments. Treasury designated both exchanges under Executive Orders 13902 and 13224, targeting their financial support for the Iranian regime and IRGC activities.

Sanctions Target Human Rights Violations and Corruption

Beyond crypto, OFAC sanctioned seven Iranian officials for their roles in violently repressing protests. They include Interior Minister Eskandar Momeni Kalagari and IRGC commanders across Tehran, Hamadan, Gilan, and Kermanshah. 

Security forces under their command have killed hundreds of demonstrators. These include children, with mass arrests, intimidation, and brutal suppression reported nationwide.

Treasury also sanctioned Zanjani for facilitating regime corruption and laundering stolen funds. All property of the designated individuals in the US, or under US persons’ control, is blocked. 

Transactions involving these entities are prohibited unless authorized by OFAC. Secretary Scott Bessent emphasized that the sanctions aim to punish.

They aim to pressure the Iranian regime to cease human rights abuses and financial misconduct. This moves underscores Washington’s commitment to supporting the Iranian people.

This will guide internet access during blackouts and intensify its campaign against Iran’s shadow banking and sanctions evasion network

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