Two crypto exchanges registered in the United Kingdom processed approximately $1 billion in transactions linked to Iran’s Islamic Revolutionary Guard Corps while publicly operating as conventional trading platforms, blockchain intelligence firm TRM Labs revealed in a January 9 report.
Zedcex and Zedxion facilitated operational financing for the IRGC, with illicit flows accounting for roughly 56% of their total transaction volume and peaking at 87% in 2024.
The exchanges incorporated in the UK between 2021 and 2022 used nominal directors, virtual office addresses, and repeatedly filed dormant accounts despite processing billions in on-chain activity.
Corporate records directly connect Zedcex to Babak Morteza Zanjani, an Iranian sanctions-evasion financier previously sanctioned by the US and EU in 2013 for laundering billions in oil revenue on behalf of regime entities, including the IRGC, before those penalties were lifted under the now-defunct Iran nuclear deal.
Source: TRMLabsNetwork Processed Record IRGC Flows Through Shell Structure
IRGC-linked addresses at Zedcex processed $23.7 million in 2023, representing 60% of total activity, before surging to $619.1 million in 2024 when the IRGC share jumped to 87%.
Activity declined to $410.4 million in 2025 as non-IRGC flows increased, reducing the corps’ share to 48%.
The two exchanges operated as a single enterprise despite separate UK incorporation, with both entities sharing directors, addresses, and coordinated timing that indicated continuity rather than independence.
Zanjani’s withdrawal from Zedxion in 2022, followed immediately by Zedcex’s incorporation under the same control structure and address, suggested operational continuity rather than separation.
After being arrested in Iran and sentenced to death for embezzling millions from Iran’s National Oil Company, his sentence was commuted in 2024 after repaying funds, and he re-emerged publicly with proximity to regime-linked economic projects through DotOne Holding Group, a conglomerate spanning cryptocurrency, foreign exchange, logistics, and telecommunications.
Source: TRMLabsTRM analysis linked Zedcex wallets directly to addresses designated by Israeli authorities as IRGC property under the Administrative Seizure Order ASO-43/25, issued in September 2025, many of which Tether subsequently blocklisted.
Transfers conducted almost entirely in USDT on the TRON blockchain routed funds between designated IRGC addresses, offshore intermediaries, and domestic Iranian exchanges, including Nobitex, Wallex, and Aban Tether.
The exchanges also integrated with Zedpay, a Turkey-based mobile payment processor that maintains relationships with Turkish financial entities, including Vepara, whose license was later suspended amid money laundering concerns, and Vakif Katilim, a state-owned Islamic bank previously scrutinized for facilitating Iran-linked financial activity.
This integration extended capabilities beyond trading to support fiat settlement and real-world payments for actors under sanctions constraints.
Direct Terrorist Financing Links Established On-Chain
On-chain tracing revealed that over $10 million in USDT transferred directly from wallets dually attributable to Zedcex and the IRGC to addresses controlled by Sa’id Ahmad Muhammad al-Jamal, who is sanctioned by the US Treasury for providing material support to the IRGC and operating smuggling networks that generate revenue for Yemen’s Houthis.
The absence of intermediary routing established Zedcex infrastructure as an active funding rail rather than an incidental touchpoint.
The case emerges as sanctioned nation-states increasingly dominate crypto crime statistics, with Chainalysis reporting illicit addresses received at least $154 billion in 2025, marking a 162% jump from $59 billion in 2024, driven largely by a 694% increase in sanctioned entity activity.
Stablecoins accounted for 84% of all illicit transaction volume, mirroring broader ecosystem trends in which these assets offer easy cross-border transfers and lower volatility.
Iran’s broader crypto operations have faced mounting pressure throughout 2025, with flows involving Iranian entities falling to $3.7 billion between January and July, a 11% decline from 2024.
The Treasury Department sanctioned two Iranian nationals in September for coordinating over $100 million in cryptocurrency oil sales benefiting the IRGC, while Iran has explored accepting digital currencies for advanced weapons sales, including ballistic missiles and drones marketed through its Ministry of Defense Export Center.
Russia launched its ruble-backed A7A5 token in February 2025, processing over $93.3 billion in transactions in less than a year as Moscow similarly leveraged crypto infrastructure to circumvent Western financial restrictions.
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