The United States Department of the Treasury has sanctioned two UK-registered cryptocurrency exchanges linked to Iran’s financial system, marking Washington’s first direct move against digital asset platforms under its Iran sanctions programme.
The action was announced by the Treasury’s Office of Foreign Assets Control, which said the measures form part of a broader crackdown on Iranian officials and financial networks.
US authorities said the targeted networks are accused of suppressing dissent at home while using alternative financial channels to bypass international sanctions.
Among those sanctioned was Eskandar Momeni Kalagari, Iran’s interior minister who oversees the country’s law enforcement forces.
“Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people,”
Treasury Secretary Scott Bessent said.
OFAC also designated Babak Morteza Zanjani, a businessman previously convicted of embezzling billions of dollars in oil revenue from Iran’s national oil company.
The Treasury said Zanjani was released from prison and later used by the Iranian state to help move and launder funds tied to strategic projects.
US officials allege that these activities provided financial support to initiatives linked to the Islamic Revolutionary Guard Corps.
The sanctions extend to two UK-registered crypto exchanges, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., which US officials say are connected to Zanjani.
OFAC said the exchanges processed large volumes of transactions linked to IRGC-affiliated entities.
According to the Treasury, Zedcex alone has handled more than $94 billion in transactions since its registration in 2022.
“This marks OFAC’s first designation of a digital asset exchange for operating in the financial sector of the Iranian economy,”
The Treasury said.
Bessent accused Tehran of diverting oil revenues into weapons programmes and militant proxies rather than supporting its population.
He said the United States would continue to pursue networks that exploit digital assets to evade sanctions and finance illicit activity.