Cryptocurrency exchanges Zedcex and Zedxion are sanctioned by the United States! They are considered part of the national economy for assisting Iran in evading sanctions.

The U.S. Department of the Treasury has for the first time included cryptocurrency trading platforms in its Iran sanctions list, directly accusing Zedcex and Zedxion of assisting the Iranian regime and the Revolutionary Guards in evading sanctions, highlighting that crypto assets are becoming a new battleground for international financial regulation.
(Background: Iran’s central bank secretly stockpiled 500 million USD in USDT last year! Revealed to stabilize the Rial exchange rate and respond to international sanctions)
(Additional context: The double-edged sword of stablecoins: USDT becomes a lifeline in Venezuela and Iran, and also a tool for sanctions evasion)

Table of Contents

• First mention of crypto trading platforms, key shift in sanctions approach
• Suspected aiding of IRGC, handling large fund flows
• Sanctions details and impacts, full ban on US persons

Recently, the U.S. Department of the Treasury announced that two crypto asset trading platforms, Zedcex Exchange and Zedxion Exchange, have been added to the sanctions list. The reason is their suspected involvement in facilitating financial transactions for the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC), using digital assets to evade international sanctions. This marks the first time the U.S. government has directly sanctioned crypto trading platforms under the claim that they are “part of Iran’s financial system.”

First mention of crypto trading platforms, key shift in sanctions approach

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury pointed out that Zedcex and Zedxion are both registered digital asset platforms in the UK, with long-standing close ties to Iranian businessman Babak Morteza Zanjani. OFAC determined that these platforms, in their actual operations, constitute part of Iran’s economic and financial sector, and therefore are subject to sanctions under relevant executive orders.

This move is highly symbolic. Previously, U.S. sanctions mainly targeted individuals, banks, shipping, or energy companies. This time, crypto trading platforms are explicitly included within the scope of national sanctions tools, reflecting that the U.S. considers digital assets as a significant channel that could be exploited by state regimes.

Suspected aiding of IRGC, handling large fund flows

According to OFAC, since its establishment in 2022, Zedcex has processed over 94 billion USD in transactions; Zedxion, in its early days, even directly listed Zanjani as a director. Investigations show that multiple wallet addresses associated with these platforms have handled funds related to the IRGC.

The U.S. believes these transactions involve money laundering and sanctions evasion, and may also fund Iran’s military, terrorist activities, and cybercrime. Therefore, they are also invoking counter-terrorism executive orders to designate both platforms as “entities that substantially assist IRGC.”

Sanctions details and impacts, full ban on US persons

Under the sanctions, all assets of Zedcex and Zedxion within the U.S. or owned and controlled by U.S. persons will be immediately frozen. U.S. persons are also prohibited from engaging in any transactions with them. If any enterprise or entity is directly or indirectly owned more than 50% by the sanctioned entities, the freezing measures also apply.

Furthermore, any financial institution or third party continuing to conduct funds or technology transfers with these platforms may face “secondary sanctions,” further increasing compliance pressure on the global crypto industry.

The U.S. Department of the Treasury emphasizes that the Iranian regime is attempting to use crypto assets to evade sanctions and transfer illegal funds, and the U.S. will continue to investigate related networks, regardless of how “decentralized” they may appear.