The US Treasury Department is in disarray crypto exchanges affiliated with Iran’s Revolutionary Guards. On Friday, officials announced sanctions against Zedcex Exchange and Zedxion Exchange.
The Press release from the Ministry of Finance this is the first time OFAC has designated digital asset exchanges to operate in Iran’s financial sector. In 2022, the platforms had more than 94 billion transactions. These transactions funded several IRGC wallet addresses.
Scott Bessent, the Minister of Finance, criticized the regime’s financial activities. Bessent said the regime is frantically transferring money stolen from Iranians’ families to banks in other parts of the world. He promised further action against networks that use digital means to avoid sanctions.
Shadow banking network exposed
Both cryptocurrency exchanges are reportedly sponsored by Babak Morteza Zanjani. He was sentenced to death by Iranian courts in 2016 for embezzling billions of dollars from the National Oil Company of Iran. His sentence was reduced in 2024.
Zanjani is now funding major infrastructure projects to help the IRGC. In April 2025, he offered financial support for one of the largest investments in Iran’s railways. The stock exchanges registered in Great Britain are directly related to its activities.
Zedxion listed Zanjani as director when it registered in May 2021. The two platforms processed wallet transactions linked to Revolutionary Guard entities. The path of the funds was followed by the officials of the Ministry of Finance with the help of blockchain addresses.
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Security forces face sanctions
OFAC has placed Iranian Interior Minister Eskandar Momeni Kalagari under violent crackdown watch. His police killed thousands of non-violent protesters. Mass arrests and enforced disappearances have been carried out by security forces.
Five IRGC officers were sanctioned due to the violence in the province. In Gilan province, troops led by Hamid Damghani killed hundreds of protesters. Security forces used live ammunition against unarmed protesters in the area.
Ghorban, Tehran’s provincial commander, presided over the execution of the demonstrators. Bodies were kept on the streets because local morgues were overcrowded. Dead remains were piled into shipping containers and pickup trucks by IRGC soldiers.
The 2025 sanctions campaign has already affected more than 875 individuals, ships and aircraft. The Treasury Department continues to attack money laundering networks and shadow banks in Iran. Foreclosure is applied to all property of certain persons in the US jurisdiction.
Financial institutions are exposed to sanctioned transactions with blocked entities. OFAC enjoins the violations in a strict liability case. The agency tries to induce behavior change rather than punish.
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