In a move signaling increased scrutiny of the digital asset space, the U.S. Treasury Department has sanctioned two UK-based cryptocurrency exchanges, Zedcex and Zedxion, for allegedly aiding Iran in evading sanctions. This marks the first time the Treasury’s Office of Foreign Assets Control (OFAC) has specifically targeted crypto exchanges for operating within Iran's financial sector. The sanctions were announced on January 30, 2026.
According to OFAC, Zedcex and Zedxion have been instrumental in processing crypto transactions and providing financial services to the Islamic Revolutionary Guard Corps (IRGC). Zedcex, registered in August 2022, has reportedly processed over $94 billion in transactions. Zedxion, registered in May 2021, previously listed Iranian businessman Babak Morteza Zanjani as a director. Zanjani, who was sanctioned by OFAC in 2013 for financially facilitating the IRGC but later delisted under the Joint Comprehensive Plan of Action, has been re-sanctioned and is reportedly connected to both exchanges. OFAC alleges he was freed from prison to launder money for the Iranian regime. The sanctioned addresses have reportedly handled over $389 million.
Alongside the crypto exchanges, OFAC has also sanctioned seven Iranian individuals, including six with ties to the IRGC, for their involvement in the regime's activities and the violent suppression of protests that began in late December 2025. These individuals are allegedly responsible for the brutal crackdown on Iranian citizens, which reportedly resulted in over 36,000 deaths within two days in January 2026. Among those sanctioned is Iranian Interior Minister Eskandar Momeni Kalagari.
OFAC's action is intended to combat the growing trend of Iranian entities using digital assets to circumvent sanctions and conduct illicit activities. The agency stated that Iran has been using these exchanges to launder billions of dollars and evade sanctions. By targeting these exchanges, the U.S. Treasury aims to disrupt Iran's ability to use cryptocurrency to finance its activities and support organizations like the IRGC.
Elliptic, a blockchain analytics firm, has taken steps to ensure its customers can identify and screen addresses associated with the sanctioned exchanges and individuals. This will help prevent the inadvertent processing of funds linked to these designated entities.
These sanctions follow recent actions by both the U.S. and the European Union against Iran. The EU Council sanctioned 15 individuals and six entities on January 29, 2026. The U.S. continues to signal to allies the potential for imminent action against Iran. These coordinated efforts highlight the international community's growing concern over Iran's activities and its use of cryptocurrency to circumvent sanctions.
