U.S. imposes sanctions on crypto exchanges tied to Iran for the first time

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email U.S. imposes sanctions on crypto exchanges tied to Iran for the first time The exchanges were accused of facilitating transactions for the Islamic Revolutionary Guard Corps and are linked to an Iranian businessman convicted of embezzlement. By Francisco Rodrigues , AI Boost | Edited by Shaurya Malwa Jan 31, 2026, 1:00 p.m. Make us preferred on Google (Photo by hosein charbaghi on Unsplash/Modified by CoinDesk) What to know : The U.S. Treasury Department sanctioned two crypto exchanges, Zedcex and Zedxion, for the first time under Iran-specific financial sanctions. The exchanges were accused of facilitating transactions for the Islamic Revolutionary Guard Corps and are linked to Babak Morteza Zanjani, an Iranian businessman convicted of embezzlement. The sanctions freeze all U.S.-linked assets of these exchanges and prohibit American individuals and entities from engaging with them, marking a significant escalation in crypto-related financial enforcement. The U.S. Treasury Department has, for the first time, sanctioned cryptocurrency exchanges for operating in Iran’s financial sector. The Office of Foreign Assets Control (OFAC) announced sanctions against Zedcex and Zedxion both registered in the United Kingdom, as part of a broader crackdown on Iranian authorities after their brutal suppression of an internal uprising that killed thousands of their own citizens. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . According to the Treasury's statement, the exchanges facilitated transactions for the Islamic Revolutionary Guard Corps (IRGC), which the U.S. and its allies in the European Union designate as a terrorist organization. Since their registration in 2022, just one of these processed over $94 billion in transactions, the Treasury said. The two platforms are also linked to Babak Morteza Zanjani, an Iranian businessman once convicted of embezzling billions from Iran’s national oil company. OFAC alleges Zanjani used the exchanges to help move funds for the regime, including proceeds supporting IRGC-linked entities. The Central Bank of Iran (CBI) was found earlier this month to have bought over $500 million of Tether’s USDT stablecoin, with the primary purpose of manipulating foreign exchange markets as the rial’s value plunged. This designation marks a shift. While OFAC has previously sanctioned individual crypto wallet addresses and technology providers tied to sanctions evasion or cybercrime, yet this is the first time it has blacklisted entire exchange entities under Iran-specific financial sanctions authorities. As a result of the designation, all U.S.-linked assets of the exchanges are now frozen, and American individuals and entities are barred from engaging with them. Iran Treasury Sanctions AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . In this article BTC BTC $ 82,673.32 ◢ 0.00 % ONDO ONDO $ 0.3003 ◢ 3.64 %