OFAC Designates Iranian-Linked Crypto Exchanges in First-Ever Action Targeting Digital Asset Firms in Iran’s Financial Sector
TL;DR
- OFAC designated two UK-registered crypto exchanges, Zedcex and Zedxion, for working in Iran’s monetary sector and processing cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC).
- The motion contains seven Tron (TRX) addresses related to Zedcex, a service that has reportedly processed over $94 billion in transactions since its registration in August 2022.
- This marks OFAC’s first designation of digital asset exchanges particularly for working in Iran’s monetary sector.
- The exchanges are linked to Iranian businessman Babak Morteza Zanjani, who was beforehand sentenced to dying for embezzling billions from Iran’s National Oil Company
- These designations are a part of a broader motion concentrating on Iranian officers accountable for human rights abuses and violent repression of protesters.
On January 30, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated two UK-registered cryptocurrency exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., for working in Iran’s financial sector and processing cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC). This motion marks the primary time OFAC has particularly designated digital asset exchanges for working in the monetary sector of the Iranian economic system.
Digital asset exchanges supporting the IRGC
According to OFAC in addition to our on-chain information, the designated exchanges have processed important volumes of funds related to IRGC-linked counterparties. Zedcex Exchange Ltd., registered in August 2022, has reportedly processed over $94 billion in transactions since its institution.
Zedxion Exchange Ltd., registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as its director. Both exchanges seem like a part of a community facilitating sanctions evasion and cash laundering for Iranian state pursuits, notably the IRGC.
Secretary of the Treasury Scott Bessent highlighted the Iranian regime’s exploitation of digital belongings, stating, “This contains the regime’s makes an attempt to take advantage of digital belongings to evade sanctions and finance cybercriminal operations. Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian households to banks and monetary establishments all over the world.”
Babak Morteza Zanjani: From dying row to sanctions record
The exchanges’ connection to Babak Morteza Zanjani provides a notable dimension to at present’s motion. In 2013, he was initially designated by OFAC for performing as a monetary facilitator for the IRGC, and he was delisted in 2016 underneath Joint Comprehensive Plan of Action (JCPOA)-related designation removals. That similar 12 months, he was sentenced to dying in Iran for embezzling billions of {dollars} from Iran’s National Oil Company. However, his sentence was commuted in 2024, and by April 2025, he had reemerged as a monetary backer of certainly one of Iran’s largest railway investments.
OFAC describes Zanjani as an “Iranian businessman and sanctions evader” energetic in a number of sectors together with hospitality, transportation, know-how, monetary companies, and oil exports. His connection to the designated cryptocurrency exchanges suggests a complicated operation trying to leverage digital belongings for sanctions evasion.
On-chain exercise of the designated addresses
OFAC included seven Tron (TRX) addresses in the designation of Zedcex Exchange Ltd. Notably, a few of these wallets overlap with wallets recognized by Israel’s NBCTF in September 2025 as managed by the IRGC:
- TCA9vmjsYw9MtPKEwRBtGhKFRfr4CLxJAv
- TGsNFrgWfbGN2gX25Wcf8oTejtxtQkvmEx
- TASWbk6X1wiTku5TMmMQYqYFvshVEtfJy8
- TTS9o5KkpGgH8cK9LofLmMAPYb5zfQvSNa
- TCzq6m2zxnQkrZrf8cqYcK6bbXQYAfWYKC
- TLvuvpfBKdxddxSsJefeiGCe9eVY8HUroE
- TNuA5CQ6LB4jTHoNrjEeQZJmcmhQuHMbQ7
The Chainalysis Reactor graph under exhibits a pattern of Zedcex’s interplay with IRGC counterparties, in addition to Iranian exchanges, different sanctioned entities, and compliant companies.
Pattern of Iranian exploitation utilizing digital belongings
Today’s motion is a part of a rising sample of Iranian actors and their proxies turning to cryptocurrencies to evade sanctions and facilitate illicit actions. In current years, OFAC has designated quite a few Iran-linked people and entities concerned in cryptocurrency-related sanctions evasion, although this marks the primary designation particularly concentrating on digital asset exchanges for working in Iran’s monetary sector.
The use of cryptocurrencies by the Iranian regime and its proxies has been documented in a number of current designations:
- In September 2025, OFAC designated Iranian nationals Alireza Derakhshan and Arash Estaki Alivand, who coordinated the acquisition of over $100 million price of cryptocurrency associated to Iranian oil gross sales between 2023 and 2025.
- Also in September 2025, Israel’s NBCTF listed dozens of IRGC wallets with transaction volumes totaling over $2 billion.
- In April 2025, OFAC designated eight wallets with transaction volumes nearing $1 billion used to assist the Iran-based Houthis’ weapons, commodities procurement, and sanctions evasion efforts.
- In December 2024, OFAC up to date its designation of IRGC-connected Houthi Financier Sa’id al-Jamal to incorporate crypto wallets utilized by him to facilitate cash laundering and illicit delivery of Iranian oil on behalf of Houthi rebels.
Broader motion towards Iranian officers
The designation of the cryptocurrency exchanges is a part of a broader motion concentrating on Iranian officers accountable for human rights abuses. OFAC additionally designated six Iranian officers related to the IRGC and Law Enforcement Forces (LEF) for his or her roles in the violent repression of protesters.
These people embody Eskandar Momeni Kalagari, Iran’s Minister of the Interior who oversees the Law Enforcement Forces of the Islamic Republic of Iran (LEF), and a number of IRGC commanders accountable for provinces the place safety forces have killed protesters, together with kids.
Impact on cryptocurrency compliance
Today’s motion introduces new compliance concerns for cryptocurrency companies globally. The designation of UK-registered entities with ties to Iran underscores the significance of sturdy know-your-customer (KYC) procedures and enhanced transaction monitoring, notably when coping with exchanges which have important publicity to illicit wallets.
We have labeled the designated Tron addresses in our product suite and have up to date our screening options to incorporate all designated people and entities from at present’s motion. If you’d wish to be taught extra about Chainalysis merchandise, click on here to request a demo.
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