Washington expands sanctions into the digital asset sector by designating two UK-based exchanges and affiliated actors for facilitating transactions tied to Iran’s Islamic Revolutionary Guard Corps, marking a significant escalation in crypto enforcement.
Washington has extended its sanctions apparatus into the cryptocurrency sector by designating two UK-registered digital asset exchanges and a network of associated actors for facilitating transactions tied to Iran’s Islamic Revolutionary Guard Corps, according to U.S. Treasury announcements and industry analysts. The move, announced on January 30, 2026, marks the first time American authorities have specifically targeted trading platforms for their role in Iran’s financial sector, officials said.
The Office of Foreign Assets Control named Zedcex Exchange Ltd. and Zedxion Exchange Ltd. among the entities subject to designation, and Treasury statements said any assets these firms hold within U.S. jurisdiction are now blocked and U.S. persons are barred from dealing with them. The measures also put third-party firms on notice that continued engagement could expose them to secondary sanctions, potentially curtailing the exchanges’ access to global liquidity and counterparties.
According to a Chainalysis blog post summarising the action, the designations were taken because the platforms processed cryptocurrency movements that benefitted IRGC-linked entities. Independent flow analysis cited by financial news outlets and blockchain investigators indicates the two exchanges have handled substantial volumes since their registration in 2022. One metric that has been reported repeatedly is a combined transaction throughput in excess of $94 billion, with roughly $1 billion identified as linked to IRGC-related activity between 2023 and 2025, a concentration that peaked at about 87 percent in 2024, industry sources say.
U.S. officials contend the platforms operated within a wider financial web controlled by an Iranian businessman under long-standing scrutiny. Industry reporting identifies Babak Morteza Zanjani as a central figure alleged to have channelled rial-denominated proceeds into digital assets, which were moved through multiple wallets before being cashed out overseas. The Treasury’s action also included designations against Iranian officials for alleged roles in repression, expanding the scope beyond purely financial targets. Intellinews reported seven Iranian figures were sanctioned alongside the exchanges, including senior security and provincial IRGC commanders.
Analysts who have examined on-chain data warn that the pattern is part of a more persistent use of crypto infrastructure by sanctioned actors rather than isolated transactions. Ari Redbord, global head of policy at TRM Labs, said in an emailed comment that Iranian-linked actors appear to be testing sustained crypto channels, while other analysts flagged significant flows conducted primarily in USDT on the Tron network. Early independent firm assessments linked at least hundreds of millions of dollars of IRGC-related transfers to addresses associated with the two exchanges, according to reporting by The Washington Post.
The Treasury criticised the platforms for failing to maintain adequate controls to detect and prevent illicit activity, saying they ignored indicators associated with large-value transfers tied to IRGC front companies in sectors such as energy, construction and logistics. The practical effect of the designations is immediate: any property within reach of U.S. jurisdiction is frozen and American entities must cut ties, with foreign partners warned about secondary consequences. Platform operators and industry representatives have not, in the material provided, offered rebuttals to these specific allegations.
The action is likely to accelerate compliance pressure across the crypto industry and could spur closer international regulatory alignment, observers say. Legal experts note that by holding exchanges themselves accountable, Washington is raising the compliance bar for digital asset service providers operating in jurisdictions with weaker oversight. European and Asian regulators have already been tightening licensing and monitoring regimes in recent years after several high-profile failures and enforcement interventions.
Officials acknowledge limits to enforcement: decentralised protocols and alternative marketplaces mean determined actors may shift channels, raising costs rather than eliminating misuse entirely. Nevertheless, Treasury officials and sanctions experts argue that successive designations increase transaction friction and constrain the scale at which sanctioned networks can operate, complicating attempts to substitute digital assets for conventional banking when under comprehensive sanctions.
- https://thearabianpost.com/u-s-sanctions-target-iran-linked-crypto-exchanges-in-first-move/ – Please view link – unable to able to access data
- https://www.chainalysis.com/blog/ofac-designates-iranian-crypto-exchanges-january-2026/ – On January 30, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two UK-registered cryptocurrency exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., for operating in Iran’s financial sector and processing cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC). This action marks the first time OFAC has specifically designated digital asset exchanges for operating in the financial sector of the Iranian economy. ([chainalysis.com](https://www.chainalysis.com/blog/ofac-designates-iranian-crypto-exchanges-january-2026/?utm_source=openai))
- https://www.ainvest.com/news/time-sanctions-crypto-exchanges-flow-analysis-iran-crackdown-2602/ – The U.S. Treasury Department has sanctioned two UK-based crypto exchanges, Zedcex and Zedxion, for the first time under Iran-specific financial sanctions. This action freezes all their U.S.-linked assets and prohibits American individuals and entities from engaging with them, marking a significant escalation in crypto-related financial enforcement. The illicit flow processed through these platforms was massive. Together, they have handled over $94 billion in transactions since their registration in 2022. Of that volume, approximately $1 billion is linked to the Islamic Revolutionary Guard Corps (IRGC), representing roughly 56% of their total transaction flow. This share peaked at 87% in 2024, indicating a high concentration of sanctioned activity. ([ainvest.com](https://www.ainvest.com/news/time-sanctions-crypto-exchanges-flow-analysis-iran-crackdown-2602/?utm_source=openai))
- https://www.todayonchain.com/news/article/01KGDEFQ62MMF47VZ0BQZZZTAM/ – The U.S. sanctioned two UK-registered crypto exchanges, Zedcex and Zedxion, for processing funds for Iran’s IRGC. The exchanges are accused of processing funds for the Islamic Revolutionary Guard Corps (IRGC), which the U.S. classifies as a terrorist organization. The sanctions also targeted Iranian financier Babak Morteza Zanjani, who allegedly laundered money for the regime after his death sentence was commuted. Treasury Secretary Scott Bessent stated the action targets networks exploiting digital assets to evade sanctions. Reports indicate Zedcex processed over $94 billion in transactions since 2022, with both exchanges handling significant IRGC-linked volumes, primarily via USDT on Tron. ([todayonchain.com](https://www.todayonchain.com/news/article/01KGDEFQ62MMF47VZ0BQZZZTAM/?utm_source=openai))
- https://www.intellinews.com/us-sanctions-iranian-officials-over-repression-and-irgc-linked-crypto-exchanges-423253/ – The United States has sanctioned seven Iranian officials and two London-based cryptocurrency exchanges linked to the Islamic Revolutionary Guard Corps for human rights violations and illicit financial activities, the Treasury Department announced on January 30. The Treasury designated six Iranian officials for roles in the violent repression of protesters, including Eskandar Momeni, Iran’s interior minister and head of the National Security Council, and Majid Khademi, commander of the IRGC Intelligence Organisation. Other sanctioned officials include IRGC provincial commanders Hamid Damghani for Gilan Province, Hossein Zare Kamali for Hamadan Province and Ghorban Mohammad Valizadeh for Tehran Province, as well as Mehdi Hajian, Law Enforcement Forces commander for Kermanshah Province. ([intellinews.com](https://www.intellinews.com/us-sanctions-iranian-officials-over-repression-and-irgc-linked-crypto-exchanges-423253/?utm_source=openai))
- https://www.kucoin.com/news/flash/u-s-treasury-sanctions-uk-based-zedcex-and-zedxion-exchanges-for-ties-to-iran – The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned UK-based cryptocurrency exchanges Zedcex and Zedxion for violations of digital asset regulations related to Iran. The exchanges are connected to Iranian businessman Babak Morteza Zanjani and have processed over $94 billion in transactions since 2022. Addresses associated with the platforms have supported wallets linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). OFAC also targeted Iranian Interior Minister Eskandar Momeni Kalagari for his role in violent crackdowns. The action underscores increasing scrutiny of liquidity and cryptocurrency markets in sanctioned regions. ([kucoin.com](https://www.kucoin.com/news/flash/u-s-treasury-sanctions-uk-based-zedcex-and-zedxion-exchanges-for-ties-to-iran?utm_source=openai))
- https://www.washingtonpost.com/world/2026/01/09/iran-irgc-revolutionary-guard-cryptocurrency/ – The IRGC transactions represented 56 percent of the firms’ volume between 2023 and 2025, the analysis found. Instead of using isolated or intermittent crypto transactions, “Iranian-linked actors — including sanctioned military organizations — appear to be testing more persistent crypto infrastructure,” said Ari Redbord, global head of policy at TRM Labs, in an emailed statement. A spokesman for Iran’s mission to the United Nations declined to comment. “The $1 billion figure over two years demonstrates that digital currencies are becoming a financial channel for Iran’s shadow banking apparatus,” said Miad Maleki, a former U.S. Treasury official who worked on Iran sanctions efforts and is now a senior adviser at the Foundation for Defense of Democracies. Snir Levi, founder of Israeli crypto analysis firm Nominis, said that an initial analysis by his firm based on the same public data also found that the exchanges were used by the Iranian military organization. The analysis linked at least $150 million in IRGC transactions using Zedxion and Zedxce. ([washingtonpost.com](https://www.washingtonpost.com/world/2026/01/09/iran-irgc-revolutionary-guard-cryptocurrency//?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article reports on a U.S. Treasury announcement from January 30, 2026, regarding sanctions on two UK-registered crypto exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., marking the first time U.S. authorities have specifically targeted trading platforms for their role in Iran’s financial sector. This is a recent and original development, with no evidence of prior reporting on this specific action.
Quotes check
Score:
8
Notes:
The article includes direct quotes from U.S. officials and industry analysts. However, the exact sources of these quotes are not specified, making independent verification challenging. Without clear attribution, the reliability of these statements cannot be fully confirmed.
Source reliability
Score:
6
Notes:
The article originates from The Arabian Post, a niche publication. While it provides detailed information, the lack of a broader reputation or independent verification raises concerns about its reliability. The absence of citations or links to primary sources further diminishes trustworthiness.
Plausibility check
Score:
7
Notes:
The claims about the sanctions and the involvement of the exchanges in facilitating transactions for Iran’s Islamic Revolutionary Guard Corps (IRGC) are plausible and align with known U.S. enforcement actions. However, the lack of independent verification and the reliance on a single source without corroboration reduce the overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on recent U.S. sanctions targeting two UK-registered crypto exchanges for facilitating transactions linked to Iran’s IRGC. While the topic is plausible and timely, the reliance on a single, niche source without independent verification and the absence of clear attribution for direct quotes raise significant concerns about the article’s reliability and accuracy. Given these issues, the content cannot be fully trusted without further corroboration from reputable sources.