Recent research by TRM Labs has unveiled alarming details about two cryptocurrency exchanges registered in the United Kingdom, Zedcex and Zedxion, which facilitated approximately $1 billion in stablecoin transactions linked to Iran”s Islamic Revolutionary Guard Corps (IRGC) from 2023 to 2025. This significant volume underscores the potential misuse of digital currencies in evading international sanctions.
The findings indicate that IRGC-related transactions constituted a staggering 56% of the total transaction volume for these exchanges. The peak activity occurred in 2024, where IRGC transactions represented 87% of the exchanges” total volume, before declining to 48% in 2025.
Both exchanges are believed to operate as front companies for the IRGC. Zedxion was incorporated in May 2021, with Babak Morteza Zanjani, a previously sanctioned individual known for laundering billions, assuming directorship shortly thereafter. Zedcex followed suit, incorporating in mid-2022, shortly after Zanjani”s departure from Zedxion. Notably, both companies share the same virtual office addresses and have filed dormant accounts despite processing extensive cryptocurrency transactions.
These operational tactics have allowed the exchanges to function under a facade while maintaining unified control through a complex corporate structure. Zanjani”s history, including his arrest for embezzlement from Iran”s National Oil Company and subsequent release after repaying the funds, adds another layer to the exchanges” controversial activities.
Blockchain analysis by TRM Labs has traced wallets associated with Zedcex directly to addresses identified as IRGC property by Israeli authorities. Following the issuance of an Administrative Seizure Order by the National Bureau for Counter Terror Financing, Tether took action to blocklist many of these wallets.
The flow of IRGC-linked transactions through these exchanges surged from $24 million in 2023 to $619 million in 2024, primarily conducted in USDT on the TRON blockchain. Funds were frequently routed between IRGC-controlled addresses and Iranian crypto services, including Nobitex and Wallex.
Another critical aspect of this operation is the integration of Zedxion with Zedpay, a mobile payment processor based in Turkey. This relationship extends the exchanges” capabilities into fiat settlements. Notably, an on-chain analysis revealed direct transfers exceeding $10 million to Sa”id Ahmad Muhammad al-Jamal, a financier sanctioned by the US Treasury for providing support to the IRGC.
As these revelations unfold, they highlight the urgent need for regulatory scrutiny within the cryptocurrency space, particularly concerning exchanges that may facilitate illicit financial activities. The implications for both national security and the integrity of the cryptocurrency market are profound.
