Recent findings from TRM Labs have uncovered that two cryptocurrency exchanges registered in the United Kingdom, Zedcex and Zedxion, facilitated approximately $1 billion in stablecoin transactions associated with Iran”s Islamic Revolutionary Guard Corps (IRGC) between 2023 and 2025. This substantial flow of funds highlights the ongoing challenges of regulating cryptocurrency and its potential use in circumventing sanctions.
The report indicates that IRGC-related transactions peaked at a staggering 87% of the total transaction volume on these exchanges in 2024. However, this figure notably declined to 48% in 2025, which suggests a shift in operational focus or external pressures.
Both Zedcex and Zedxion appear to have operated in a coordinated manner, effectively masking their true operational reality. Zedxion, established in May 2021, featured Babak Morteza Zanjani as a director, who had previously been sanctioned by US and EU authorities for channeling funds to IRGC-affiliated entities. Zedcex was incorporated shortly after Zanjani”s formal exit from Zedxion in mid-2022. This timing raises suspicions regarding the continuity of operations aimed at facilitating IRGC financing.
Despite processing billions in cryptocurrency transactions, both exchanges filed dormant accounts until June 2025. This strategy allowed them to maintain a semblance of compliance while engaging in substantial financial activities. The operations were conducted primarily in USDT on the TRON blockchain, with funds moving between IRGC-controlled wallets and various Iranian crypto services.
The blockchain analysis conducted by TRM Labs revealed a direct connection between wallets attributed to Zedcex and addresses identified by Israeli authorities as belonging to the IRGC. This investigation culminated in an Administrative Seizure Order issued on September 1, 2025, by the National Bureau for Counter Terror Financing, which led to the subsequent blocklisting of several wallet addresses by Tether.
Further complicating matters, Zedxion integrated with Zedpay, a mobile payment processor based in Turkey. This relationship extended the crypto exchange”s capabilities into fiat settlement, raising concerns about compliance as Turkish regulators had previously suspended the license of Vepara, a partner entity, due to anti-money laundering violations.
On-chain analysis has also revealed that over $10 million was directly transferred to Sa”id Ahmad Muhammad al-Jamal, a US-sanctioned financier for the IRGC and a known operator of a smuggling network that generates revenue for the Houthi movement in Yemen. The transfers were executed without intermediaries, reflecting a transparent operational model designed to facilitate such illicit financial activities.
As these revelations unfold, the implications for regulatory frameworks surrounding cryptocurrencies grow increasingly significant. The activities of Zedcex and Zedxion serve as a stark reminder of the potential for digital currencies to be exploited for purposes that directly contravene international sanctions.
