UK Shuts Down Exchange Processing $1B for Iranian Guard
United Kingdom authorities have initiated proceedings to dissolve Zedxion Exchange Ltd., a cryptocurrency platform accused of facilitating sanctions evasion for Iran's Islamic Revolutionary Guard Corps (IRGC). The UK's corporate registry, Companies House, cited the firm's use of “misleading, false or deceptive” information during its incorporation. This action follows January sanctions from the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which designated Zedxion and a related entity, Zedcex, for their connections to sanctioned Iranian financier Babak Zanjani.
Investigations revealed that Zedxion’s listed director, “Elizabeth Newman,” was a fictitious identity created using a stock photo model's image. Records show that between October 2021 and August 2022, the person with significant control was listed as “Babak Morteza,” whose details match those of Zanjani. This deception allowed the firm to operate while obscuring its ties to entities sanctioned for supporting the Iranian state.
IRGC-Linked Crypto Volume Hit $619M in 2024
Blockchain analysis from TRM Labs quantified the scale of the operation, finding that Zedxion and Zedcex processed approximately $1 billion in funds connected to the IRGC. This activity constituted 56% of their total transaction volume. The IRGC-linked flows peaked in 2024, reaching $619.1 million and accounting for 87% of the platforms' volume that year. The data underscores how deeply the exchange was embedded in Iran's efforts to circumvent international financial restrictions.
This specific case is part of a much larger pattern. According to blockchain intelligence firm Chainalysis, illicit cryptocurrency addresses linked to the IRGC received at least $154 billion in digital assets last year, marking a 162% increase year-over-year. The figures reveal the growing reliance on crypto by sanctioned actors to move funds outside the traditional banking system.
Regulators Tighten Global Crypto Enforcement
The UK's move to dissolve Zedxion leverages new authority granted by the Economic Crime and Corporate Transparency Act 2023, which empowers Companies House to remove suspect firms from the register and mandate identity verification for directors. This regulatory tightening is not isolated to Britain. In a parallel action, Canada’s financial intelligence unit, FINTRAC, recently revoked the registrations of 23 crypto-related money services businesses. These coordinated efforts signal a decisive shift by Western governments to close regulatory gaps and increase compliance pressure on the digital asset industry to prevent its misuse for money laundering and sanctions evasion.
