US Treasury Sanctions UK Crypto Exchanges Linked to Iran’s IRGC: A Historic First

Historic First: US Treasury Blacklists UK Crypto Exchanges Linked to Iran’s IRGC

January 30, 2026 — In a groundbreaking move, the U.S. Treasury has blacklisted two UK-registered cryptocurrency exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., for their involvement in processing nearly $1 billion in transactions linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). This unprecedented action marks the first time entire digital asset platforms have been sanctioned under Iran-specific financial measures.

The Office of Foreign Assets Control (OFAC) announced the sanctions, citing the exchanges’ significant role in facilitating transactions primarily through Tether (USDT) on the Tron network. Since its inception in August 2022, Zedcex alone has processed over $94 billion in total transactions, underscoring the scale of its operations.

The exchanges are reportedly connected to Babak Morteza Zanjani, an Iranian businessman previously convicted of embezzling billions from Iran’s National Oil Company. Following the commutation of Zanjani’s death sentence in 2024, Treasury officials allege he resumed financial activities 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,” stated Treasury Secretary Scott Bessent. “This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations.”

The sanctions are part of a broader crackdown on Iranian officials and networks accused of violently repressing protesters. Reports indicate that as many as 30,000 protesters have died during recent crackdowns, with authorities employing mass burials and clandestine medical networks to conceal fatalities.

The U.S. Treasury’s actions highlight the growing use of cryptocurrency as a tool for bypassing sanctions and funding illicit operations. As Iranians continue to demand basic freedoms and economic security, the OFAC is taking decisive action against those orchestrating the regime’s brutal crackdown on peaceful demonstrators.

According to blockchain intelligence firm TRM Labs, over half of the transaction volume from Zedcex and Zedxion in 2023 was linked to IRGC-associated entities, illustrating the increasing reliance of state-backed actors on digital assets. In 2025, Iran’s Central Bank reportedly acquired over $507 million in USDT to stabilize the plummeting rial and maintain foreign trade, circumventing traditional banking restrictions.

The sanctions freeze all assets held by the designated parties in the U.S. and prohibit Americans from conducting business with Zedcex, Zedxion, Zanjani, and other designated individuals or entities. Violations carry severe civil and criminal penalties, reflecting the U.S. commitment to blocking illicit finance in the digital asset space.

This historic enforcement strategy signals a shift in how U.S. authorities approach cryptocurrency regulation. Rather than targeting individual wallets or transactions, the Treasury is now sanctioning entire 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 underscores the increasingly sophisticated interplay between digital assets and global security policy. As cryptocurrency 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.