What did the UK government do against the Iran-linked crypto network?

The UK imposed sanctions including asset freezes and travel bans on 12 individuals and entities connected to Iran’s Zindashti network. British authorities accused the group of laundering money through crypto exchanges while supporting hostile Iranian-backed operations.

Which crypto exchanges were linked to the sanctions case?

UK-registered exchanges Zedxion and Zedcex were identified as central parts of the alleged laundering operation. Authorities said the platforms processed about $1 billion in transactions since 2021, mostly using Tether on the Tron blockchain.

Why are Tether and Tron mentioned in the investigation?

Investigators said most of the transaction volume moved through USDT stablecoins on Tron because the network offers low fees and fast transfers. Tron and Tether are widely used in global crypto payments, which can also make them attractive for illicit finance activity.

How much of the crypto activity was allegedly illicit?

British authorities estimated around 56% of the exchanges’ transaction flow was illicit initially, rising to about 87% by 2024. That suggests most activity linked to the platforms was allegedly tied to sanctions evasion or illegal financial operations.

Why does this case matter for the wider crypto industry?

The case increases pressure on regulators to tighten oversight of crypto exchanges and stablecoin transactions. It also reinforces concerns among governments that blockchain infrastructure can be used for sanctions evasion and terror financing.

Who is Babak Zanjani and why is he important in this case?

Babak Zanjani is an Iranian businessman previously accused of helping move Iranian oil revenues through shell companies and global financial networks. UK authorities believe his links to the exchanges show crypto laundering was connected to a broader sanctions-evasion system.

What role did the IRGC allegedly play in the laundering network?

Authorities alleged the exchanges processed funds tied to Iran’s Islamic Revolutionary Guard Corps. The UK said the same network handling financial flows was also linked to operational activity connected to Iranian-backed hostile actions.

Why is the UK dissolving Zedxion?

Companies House moved to dissolve Zedxion after discovering the company used a fictitious director in its filings. The move signals tougher enforcement against crypto firms using misleading corporate structures in the UK.

Image for illustrative purposes only. Not a real photo.

UK targets Iran-linked crypto laundering network

Written by Heidi Cuthbert Published May 13, 2026, 1:04 AM

The UK imposed sanctions including asset freezes and travel bans on 12 individuals and entities connected to Iran’s Zindashti network over allegations of crypto laundering and hostile activity linked to Tehran.

British authorities said UK-registered crypto exchanges Zedxion and Zedcex processed roughly $1 billion since 2021, primarily in Tether’s USDT stablecoin on the Tron blockchain, with investigators estimating most of the transaction flow was illicit.

Companies House has also moved to dissolve Zedxion after discovering the exchange listed a fictitious director in its corporate filings.

Investigators alleged the exchanges processed funds tied to Iran’s Islamic Revolutionary Guard Corps, with illicit flows reportedly increasing from 56% of activity to 87% by 2024.

Authorities also linked transactions exceeding $10 million in USDT to Sa’id Ahmad Muhammad al-Jamal, a Houthi financier previously sanctioned by the US Treasury’s Office of Foreign Assets Control.

Iranian businessman Babak Zanjani was also named in connection with the network, with British officials alleging ties to broader systems used to move Iranian oil revenues through shell companies and financial intermediaries.

The UK said the Zindashti network was involved not only in financial activity but also in coordinating Iranian-backed hostile operations, including alleged attack planning targeting Western interests.

The sanctions form part of a wider crackdown on crypto-linked sanctions evasion as UK regulators prepare stricter digital asset authorisation rules in 2026 amid growing concerns over terror financing and illicit blockchain activity.