US Sanctions UK Crypto Exchanges Amid Iran-Related Woes
The US Treasury has taken the unprecedented step of blacklisting two UK-registered cryptocurrency exchanges for processing funds linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
It marks the primary time total digital asset platforms have been sanctioned below Iran-specific monetary measures.
Historic First: Entire Crypto Exchanges Sanctioned Over Iran IRGC Ties
On January 30, 2026, the Office of Foreign Assets Control (OFAC) designated Zedcex Exchange Ltd. and Zedxion Exchange Ltd., citing their position in facilitating almost $1 billion in IRGC-related transactions, primarily by way of Tether (USDT) on the Tron network.
Since its registration in August 2022, Zedcex alone has processed over $94 billion in whole transactions, highlighting the size of the alternate’s operations.
Reportedly, the exchanges are tied to Babak Morteza Zanjani, an Iranian businessman beforehand convicted of embezzling billions from Iran’s National Oil Company.
Treasury officers allege that after Zanjani’s demise sentence was commuted in 2024, he resumed monetary exercise to launder funds for the Iranian regime and assist IRGC-linked initiatives.
“Treasury will proceed to focus on Iranian networks and corrupt elites that enrich themselves on the expense of the Iranian individuals,” said Treasury Secretary Scott Bessent. “This contains the regime’s makes an attempt to take advantage of digital property to evade sanctions and finance cybercriminal operations.”
The sanctions type a part of a broader crackdown on Iranian officials and networks accused of violently repressing protesters. Senior figures focused embody Interior Minister Eskandar Momeni Kalagari and several other IRGC commanders.
Independent estimates counsel that as many as 30,000 protesters have died throughout current crackdowns. Authorities reportedly use mass burials and clandestine medical networks to hide fatalities.
Crypto Used to Bypass Sanctions: US Targets Entire Exchanges and State-Backed Networks
The US Treasury’s motion highlights the rising use of crypto as a device to bypass sanctions and fund illicit operations.
Elliptic reported Iran’s Central Bank acquired over $507 million in USDT in 2025. They used stablecoins to stabilize the plummeting rial and keep international commerce, circumventing conventional banking restrictions.
The Washington Post, citing blockchain intelligence agency TRM Labs, observed that greater than half of the exchanges’ transaction quantity in 2023 was linked to IRGC-associated entities. This illustrates how state-backed actors more and more leverage digital property.
Alongside freezing all property held by sanctioned events within the US, the measures bar Americans from conducting enterprise with Zedcex, Zedxion, Zanjani, and different designated people or entities.
Civil and legal penalties for violations are extreme, reflecting the US dedication to blocking illicit finance within the digital asset area.
These sanctions additionally sign a historic shift in enforcement technique. They present that reasonably than targeting individual wallets or transactions, US authorities are actually sanctioning total crypto platforms to disrupt systemic monetary networks used for sanctions evasion and terror financing.
With over 875 Iranian individuals, vessels, and plane already sanctioned in 2025 for destabilizing actions, OFAC’s newest transfer demonstrates the more and more subtle interaction between digital property and international safety coverage.
As crypto continues to combine into worldwide finance, authorities are increasing their attain, emphasizing that exchanges working exterior conventional jurisdictions can not assume immunity when facilitating illicit flows for sanctioned states or entities.
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