The United States has imposed sanctions on two crypto exchanges for the first time under Iran-specific financial enforcement authorities, marking a significant escalation in the use of sanctions against digital asset platforms. The U.S. Treasury Department announced that Zedcex and Zedxion were designated for allegedly facilitating financial activity tied to Iran’s security apparatus.
Both exchanges, registered in the United Kingdom, were accused of processing transactions for the Islamic Revolutionary Guard Corps, which is designated by the U.S. and European Union as a terrorist organization.
Alleged Links to Sanctioned Iranian Business Network
According to Treasury findings, the exchanges are connected to Babak Morteza Zanjani, an Iranian businessman previously convicted of embezzling billions from Iran’s national oil company. Authorities allege that Zanjani used the platforms to move funds on behalf of Iranian state-linked entities, including groups associated with the IRGC.
One of the sanctioned exchanges reportedly processed more than $94 billion in transactions since 2022, underscoring the scale of activity under scrutiny.
Impact of the Sanctions
The sanctions freeze all U.S.-linked assets associated with the exchanges and prohibit American individuals and companies from engaging with them. Officials described the move as a departure from prior actions that focused on individual crypto wallets or service providers, signaling a broader enforcement approach toward entire exchange operations tied to sanctioned jurisdictions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.