The U.S. Treasury Department has sanctioned two crypto exchanges, Zedcex and Zedxion, for the first time under Iran-specific financial sanctions. The exchanges were accused of facilitating transactions for the Islamic Revolutionary Guard Corps (IRGC) and are linked to Babak Morteza Zanjani, an Iranian businessman convicted of embezzlement. OFAC designated the UK-registered platforms as part of a broader crackdown on Iranian authorities after their brutal suppression of an internal uprising that killed thousands of their own citizens.
The sanctions freeze all U.S.-linked assets of these exchanges and prohibit American individuals and entities from engaging with them, marking a significant escalation in crypto-related financial enforcement. Treasury officials said the actions reflect a widening effort to curb illicit use of digital assets by state and quasi-state actors. The designations underscore a willingness to apply Iran-specific financial sanctions to crypto-exchanges operating in or serving Iran.
The Office of Foreign Assets Control (OFAC) announced the sanctions against Zedcex and Zedxion, both registered in the United Kingdom. Treasury noted that since their 2022 registration, one of the platforms processed over $94 billion in transactions. OFAC also cited Zanjani’s alleged use of the exchanges to move funds for the regime, including proceeds supporting IRGC-linked entities.
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