The United States Treasury has sanctioned two UK-registered cryptocurrency exchanges for the first time under its Iran sanctions program. The entities, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., are accused of processing billions for networks linked to the Iranian state. This action coincides with findings that Iran’s central bank used over $500 million in USDT to potentially stabilize its national currency.
The U.S. Treasury sanctioned two cryptocurrency exchanges tied to Iran’s financial system. This marks Washington’s first direct targeting of digital asset platforms under its Iran sanctions program.
In a statement, the Treasury’s Office of Foreign Assets Control (OFAC) said the move is part of broader actions against Iranian officials. These networks are accused of suppressing dissent while using alternative financial channels to circumvent international sanctions.
Among those designated was Iranian Interior Minister Eskandar Momeni Kalagari. Treasury Secretary Scott Bessent stated, “Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people.”
OFAC also designated Iranian businessman Babak Morteza Zanjani, previously convicted of embezzling billions from Iran’s national oil company. Officials stated he was later used by the state to move and launder funds for Islamic Revolutionary Guard Corps (IRGC)-linked projects.
The sanctions extended to UK-registered crypto exchanges Zedcex Exchange Ltd. and Zedxion Exchange Ltd., which are linked to Zanjani. OFAC said Zedcex alone has processed over $94 billion in transactions since 2022.
“This marks OFAC’s first designation of a digital asset exchange for operating in the financial sector of the Iranian economy,” the Treasury stated. Bessent accused Tehran of diverting oil revenues toward weapons and proxies instead of its population.
Separately, blockchain analytics firm Elliptic said Iran’s central bank accumulated over $500 million in Tether‘s USDT during economic stress. The firm suggested the bank likely used the stablecoin to support the collapsing rial or settle international trade.
