The US Treasury has placed Zedcex Exchange and Zedxion Exchange under sanctions, saying the two crypto trading platforms helped the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC) move funds and use digital assets to bypass international restrictions. According to the Treasury, this is the first time a crypto exchange has been directly sanctioned on the basis that it forms part of Iran’s financial system.
OFAC ties both exchanges to Iran’s economic and financial sector
The Office of Foreign Assets Control (OFAC) said Zedcex and Zedxion are digital asset exchanges registered in the UK and have maintained close links with Iranian businessman Babak Morteza Zanjani. In the US view, the exchanges were operating as part of Iran’s economic and financial apparatus, which led to their designation under relevant executive orders.
The move marks a clear shift in enforcement. US sanctions have usually focused on individuals, banks, shipping networks, or energy companies. This time, crypto exchanges were explicitly brought into the sanctions framework, showing that Washington now sees digital asset infrastructure as a channel that can be used by state actors.
US says linked wallets handled funds connected to the IRGC
OFAC said Zedcex has processed more than $94 billion in trading volume since its launch in 2022. It also said Zedxion listed Zanjani as a director during its early stage. The Treasury added that several wallet addresses linked to the two exchanges handled fund flows connected to the IRGC.
US authorities said the activity went beyond sanctions evasion and money laundering, and may have supported Iranian military operations, terrorism, and cybercrime. On that basis, the Treasury also used counterterrorism-related executive orders to classify both exchanges as entities that materially assisted the IRGC.
US assets blocked and dealings by US persons prohibited
Under the sanctions, all property and interests in property of Zedcex and Zedxion that are in the United States, or held or controlled by US persons, must be blocked immediately. US persons are also prohibited from engaging in any transactions with the two platforms. The same blocking rules apply to any entity owned, directly or indirectly, 50% or more by a sanctioned party.
The Treasury also warned that financial institutions and third parties that continue providing funding or technical support to the platforms could face secondary sanctions. That raises the compliance burden for global crypto firms. The department said Iran has been trying to use crypto assets to evade sanctions and move illicit funds, and that the US will keep tracking the networks involved.