Rich by Coin

On January 30, 2026, OFAC designated two UK-registered cryptocurrency exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., for operating in Iran’s financial sector and processing cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC). This marks the first time digital asset exchanges have been designated for operating in Iran’s financial sector. According to OFAC and on-chain data, the designated exchanges processed significant volumes of funds associated with IRGC-linked counterparties.

Zedcex, registered in August 2022, has reportedly processed over $94 billion in transactions since its establishment. Zedxion, registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as its director. Both exchanges appear to be part of a network facilitating sanctions evasion and money laundering for Iranian state interests, particularly the IRGC.

OFAC described Zanjani as an “Iranian businessman and sanctions evader” active in multiple sectors, including hospitality, transportation, technology, financial services, and oil exports, and his connection to the exchanges suggests a sophisticated operation leveraging digital assets for sanctions evasion. OFAC included seven Tron (TRX) addresses in the designation of Zedcex, with some wallets overlapping with IRGC-controlled wallets identified by NBCTF in September 2025. The designation is part of a broader pattern of Iranian actors turning to cryptocurrency to evade sanctions and facilitate illicit activities.

Today’s action introduces new compliance considerations for cryptocurrency businesses globally, underscoring the importance of robust know-your-customer (KYC) procedures and enhanced transaction monitoring, especially for exchanges with exposure to illicit wallets. The designation of UK-registered entities with ties to Iran highlights these issues and emphasizes vigilant screening of crypto counterparties. Past designations of IRGC-linked individuals and entities involved in cryptocurrency-related sanctions evasion further underscore the evolving regulatory landscape for digital assets.