Iran-Linked Crypto Exchanges Face First Sanctions From US

On Friday, Jan. 30, the U.S. Treasury sanctioned two UK-registered crypto exchanges linked to Iran’s financial system, marking a first for its Iran sanctions program. The enforcement action was revealed in a Treasury statement by the Office of Foreign Assets Control (OFAC).

According to officials, the move indicates increased interest in how crypto infrastructure is being utilized to evade international sanctions and transfer illegal funds. The action raises new compliance risks for crypto exchanges operating across global markets.

OFAC Penalizes Crypto Exchanges Linked to Iranian Financial Networks.

Zedcex Exchange Ltd. and Zedxion Exchange Ltd. are the two crypto exchanges sanctioned by the authorities of the United States. This is due to their association with the Iranian businessman Babak Morteza Zanjani.

Zanjani was a former convict after he was adjudged to have stolen billions of dollars from the national oil company of Iran. U.S. authorities also accused him of having subsequently assisted in laundering money owned by the Iranian state. The Treasury claimed that the money financed projects related to the Islamic Revolutionary Guard Corps.

According to the OFAC, the activity presented a threat to the enforcement of international sanctions. The step is consistent with the general U.S. sanctions enforcement policies on banks, payment processors and international financial intermediaries. Government representatives indicated that the same will be applied to crypto platforms.

Source: OFAC website

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Treasury Identifies $94 Billion in Crypto Exchange Transactions

According to the disclosure by the OFAC on Zedcex, over $94 billion worth of transactions have been done since its registration in 2022. A substantial part was reportedly tied to IRGC-related transactions.

Treasury Secretary Scott Bessent indicated that the U.S. will proceed to penalize networks that abuse digital assets. He added that crypto will not protect those seeking to evade international financial sanctions.

The Treasury said this was the first time that OFAC had designated a crypto exchange related to the Iranian economy. The announcement is an indication that the crypto market infrastructure will undergo enhanced enforcement.

In addition to crypto exchanges, top Iranian officials on security and the commanders of their IRGC forces were also sanctioned by OFAC. The agency referred to the violent repression of demonstrators as massive abuses of human rights. According to the Treasury, the illegal financial channels were used to carry out repression and extremist activities in the regions.

Stablecoin Operation Becomes Regulatory

The restrictions are a result of enhanced monitoring of digital asset usage in Iran. Last week, the central bank of Iran made large accumulations of stablecoins, according to a report by blockchain analytics firm Elliptic.

Elliptic added that Iran amassed an excess of over $500 million of Tether USDT. The company proposed the usage of stablecoins to settle trades and support the rial, which continues to crash in value. OFAC claimed the transactions were intended to circumvent conventional banking.

Why This is Important

The move confirms crypto exchanges now face direct enforcement under U.S. sanctions law, raising compliance requirements across global markets.

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