The US Treasury has sanctioned two UK-registered cryptocurrency exchanges after linking them to Iran’s Islamic Revolutionary Guard Corps funding flows. On January 30, 2026, the Office of Foreign Assets Control added Zedcex Exchange Ltd and Zedxion Exchange Ltd to its Iran sanctions list. Officials said the platforms processed nearly $1 billion in IRGC-related transactions using Tether on the Tron network.
The action marks the first time OFAC has sanctioned entire digital asset platforms under Iran-specific financial measures. Previously, enforcement efforts focused on individual wallets or named actors rather than exchange-wide designations. The move places crypto platforms directly within the scope of terrorism financing enforcement.
Treasury officials linked the exchanges to the Islamic Revolutionary Guard Corps, which the United States designates as a terrorist organization. The sanctions impose asset freezes and block US persons from transacting with the exchanges. Non-US firms also face penalties if they conduct significant dealings with the listed entities.
OFAC tied the exchanges to Babak Morteza Zanjani, an Iranian businessman convicted of large-scale embezzlement involving Iran’s National Oil Company. Officials allege Zanjani resumed financial operations after a 2024 commutation of his death sentence. They claim he supported regime-linked projects and IRGC financial networks.
Zedcex Exchange Ltd registered in the UK on August 22, 2022. Zedxion Exchange Ltd formed earlier on May 17, 2021. Both listed their address as 71–75 Shelton Street in London.
Since registration, Zedcex processed more than $94 billion in total transactions. Treasury investigators identified multiple Tron-based wallets tied to illicit activity. These addresses reportedly moved funds linked to sanctioned Iranian networks.
Treasury Secretary Scott Bessent said the department will continue targeting networks that exploit digital assets to evade sanctions. He said Iran uses crypto tools to fund cyber operations and enforce the interests of connected elites.
The sanctions fall under Executive Order 13224 as amended by Executive Order 13886. These orders impose penalties on entities that assist in terrorism financing. All seven named individuals face exposure to secondary sanctions.
Analysts say the step signals stricter oversight of crypto platforms worldwide. Even non-US-registered exchanges now face consequences for sanctioned activity. The Treasury message raises a question for the industry: can global platforms still rely on jurisdictional distance for protection?
The UK registration of the exchanges has highlighted regulatory gaps. OFAC’s action shows that foreign incorporation does not shield platforms from US enforcement. UK regulators may now increase scrutiny of crypto firms operating domestically.
Blockchain intelligence firms expect Iran to adjust its digital asset strategies. Some reports say the Central Bank of Iran has used $500 million in USDT to support the rial. Stablecoins continue to serve as tools for bypassing traditional financial restrictions.
Market analysts told Financefeeds that compliance costs may rise across the sector. They expect exchanges with sanctioned exposure to face higher volatility risks. As of early February 2026, markets have not shown major disruptions.
Read More: Bitcoin Hashrate Slumps as Winter Storm Knocks US Miners Offline: Are the Miners Freezing?
The US Treasury sanctioned two UK crypto exchanges for handling Iran-linked IRGC funds via USDT on Tron. The action freezes assets and raises risks of secondary sanctions, signaling stricter enforcement that treats crypto platforms as part of the global financial system.