US Sanctions Crypto Exchanges for Alleged Ties to Iranian Terror Financing

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Two cryptocurrency exchanges registered in the United Kingdom have become the first digital asset platforms blacklisted under US sanctions targeting Iran’s financial sector.

On Friday, the Office of Foreign Assets Control (OFAC) announced that crypto exchanges Zedcex and Zedxion processed funds for the Islamic Revolutionary Guard Corps, which the US and EU classify as a terrorist organization.

The agency also sanctioned Babak Morteza Zanjani, an Iranian financier it accuses of bankrolling IRGC-linked projects after his release from prison.

“Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people,” Treasury Secretary Scott Bessent said in a statement. “This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations.”

Treasury said Zedcex has processed over $94 billion in transactions since its August 2022 registration, with both exchanges handling large volumes of funds for IRGC-linked counterparties.

While OFAC has previously sanctioned individual crypto wallet addresses and technology providers tied to sanctions evasion, this is the first time it has blacklisted entire exchange entities under Iran-specific financial sanctions authorities.