U.S. Sanctions Iran-Linked Crypto Exchanges in First-of-Its-Kind Move

The U.S. Treasury has taken unprecedented action against cryptocurrency exchanges tied to Iran's financial system. On January 30, OFAC sanctioned UK-registered Zedcex Exchange Ltd. and Zedxion Exchange Ltd. for their connections to convicted Iranian businessman Babak Morteza Zanjani, who allegedly stole billions from Iran's national oil company and laundered money for state-linked entities.

This enforcement highlights growing concerns about crypto networks being exploited to circumvent international sanctions. The targeted exchanges were allegedly facilitating transactions that benefited Iran's Islamic Revolutionary Guard Corps, prompting OFAC to classify them as threats to sanctions enforcement.

The MOVE signals heightened scrutiny of crypto's role in cross-border financial flows, particularly involving sanctioned jurisdictions. It establishes new compliance precedents for exchanges operating in global markets, with implications for platforms handling assets like BTC, ETH, and other major cryptocurrencies.