US Sanctions Blacklist UK Crypto Exchanges Over Iran-Linked Activity

• US sanctions target UK crypto exchanges accused of facilitating Iran-linked financial activity.
• Treasury alleges exchanges processed billions through USDT networks tied to the IRGC.
• Action forms part of broader crackdown on Iranian officials and sanctions evasion.

The US Treasury has sanctioned two UK-registered cryptocurrency exchanges, marking the first time entire digital asset platforms have been blacklisted under Iran-specific sanctions authorities. The Office of Foreign Assets Control announced on Friday that Zedcex and Zedxion were designated for allegedly processing transactions linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).

US officials said the exchanges facilitated nearly US$1 billion (AU$1.44 billion) in transactions tied to IRGC-linked counterparties, with a significant share reportedly flowing through Tether’s USDT stablecoin on the Tron network. Treasury disclosures stated that Zedcex alone processed more than US$94 billion (AU$135.36 billion) in total transactions since registering in August 2022.

The sanctions also targeted Iranian financier Babak Morteza Zanjani, who US authorities describe as having previously embezzled billions of dollars in Iranian oil revenue. Treasury alleges that after his death sentence was commuted in 2024, Zanjani resumed financial activities supporting regime-linked projects and IRGC-associated networks.

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Digital Assets Under Increased Scrutiny

Blockchain intelligence firm TRM Labs reported that approximately 56% of the exchanges’ transaction volume since 2023 was linked to IRGC-related entities. US officials said this enforcement action reflects growing concern over the use of digital assets to bypass sanctions and move funds outside traditional financial systems.

The exchange designations were announced alongside sanctions against senior Iranian officials accused of overseeing violent crackdowns on protesters, including Interior Minister Eskandar Momeni Kalagari and multiple IRGC commanders. The Treasury confirmed that more than 875 Iranian-linked individuals, vessels and aircraft were sanctioned during 2025 alone.
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