In a recent move to curb sanctions evasion, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two cryptocurrency exchanges registered in the United Kingdom for their ties to Iran’s financial system and support for the Islamic Revolutionary Guard Corps (IRGC). Announced on January 30, 2026, this action represents the inaugural targeting of digital asset platforms specifically for functioning within Iran’s economic framework.
Blockchain analytics firm Chainalysis explained in a key update that the designations encompass Zedcex Exchange Ltd. and Zedxion Exchange Ltd., along with seven associated Tron blockchain addresses, highlighting the growing role of cryptocurrencies in bypassing international restrictions.
This step forms part of a wider initiative addressing human rights violations in Iran, including the suppression of protests.
OFAC simultaneously sanctioned six high-ranking Iranian figures, such as Interior Minister Eskandar Momeni Kalagari, who directs the Law Enforcement Forces, and several IRGC provincial commanders implicated in lethal crackdowns on demonstrators, including minors.
These measures underscore Washington‘s commitment to holding accountable those involved in oppressive tactics and illicit financing.
Zedcex Exchange Ltd., established in August 2022, has handled transactions exceeding $94 billion since inception. The sanctioned Tron addresses—such as TCA9vmjsYw9MtPKEwRBtGhKFRfr4CLxJAv and others—overlap with wallets previously flagged by Israel’s National Bureau for Counter Terror Financing in September 2025 as under IRGC control.
These platforms are entangled in a web aiding Iran’s regime, facilitating the movement of funds tied to state-sponsored activities.
Zedxion Exchange Ltd., founded in May 2021, initially named Iranian entrepreneur Babak Morteza Zanjani as a director.
Zanjani, labeled a sanctions dodger, operates across industries like oil, finance, and technology.
Previously blacklisted by OFAC in 2013 for assisting the IRGC, he was temporarily removed in 2016 under nuclear deal provisions but faced a death sentence in Iran for corruption, later reduced in 2024.
By mid-2025, he resurfaced backing major infrastructure projects, further entrenching his role in evasion schemes.
The primary rationale for these sanctions stems from the exchanges’ involvement in processing substantial funds for IRGC affiliates, enabling money laundering and circumvention of penalties.
Treasury Secretary Scott Bessent likened Iran‘s tactics to “rats on a sinking ship,” desperately transferring pilfered resources via digital channels to sustain cyber operations and other illicit endeavors.
According to the insights from Chainalysis, this fits a pattern of Iranian entities leveraging crypto, as seen in prior actions against individuals like Alireza Derakhshan, who funneled over $100 million from oil sales, and Houthi-linked networks handling nearly $1 billion.
For the cryptocurrency sector, these developments signal heightened scrutiny and the necessity for stringent compliance protocols.
Blockchain analytics reveal interactions between these exchanges and sanctioned parties, urging firms to bolster customer verification and monitor for red flags like exposure to high-risk wallets.
Chainalysis also pointed out that experts emphasize that while digital assets offer innovation, they remain vulnerable to exploitation by authoritarian regimes seeking to undermine global financial integrity.
Chainalysis has now concluded that this escalation reflects ongoing tensions, with implications rippling through international markets. As regulators tighten controls, legitimate players must adapt to preserve trust and deter abuse, ensuring the technology‘s benefits outweigh its risks in an increasingly interconnected global environment.