The US Department of the Treasury has sanctioned four individuals and nine entities tied to Babak Zanjani's network, intensifying efforts to disrupt Iran's sanctions evasion schemes. This move builds upon previous designations that had already caught two crypto exchanges earlier this year.
Tracing Zanjani’s Financial Web
Babak Morteza Zanjani, an Iranian businessman with dual Iranian and UAE citizenship, has long been a key figure in Tehran’s financial maneuvers, especially around oil revenue flows. Initially blacklisted by the Treasury in 2013 for facilitating billions in Iranian oil revenues, his sanctions were lifted in 2016 following the Joint full Plan of Action (JCPOA). However, after his release from an Iranian prison, Zanjani reemerged on Washington’s radar. On January 30, 2026, the Office of Foreign Assets Control (OFAC) targeted him alongside two UK-registered digital asset exchanges: Zedcex Exchange Ltd. and Zedxion Exchange Ltd. these were the first crypto exchanges sanctioned for links to Iran’s Islamic Revolutionary Guard Corps (IRGC).
These platforms reportedly processed over $94 billion in transactions since 2022, mostly linked to IRGC-related activities. The recent sanctions expansion covering additional individuals and entities signals that US authorities perceive Zanjani’s network as a far-reaching financial infrastructure beyond the initial crackdown.
The Treasury department underscored that their actions aim to choke off the Iranian regime’s financial channels that rely heavily on digital currencies. The fact that such exchanges operated from the UK raises critical concerns about regulatory oversight and the effectiveness of compliance mechanisms in jurisdictions hosting potentially illicit crypto services.
For the crypto industry, these sanctions serve as a stark warning. Users holding assets on sanctioned platforms risk losing access to their funds and could face legal scrutiny. plus the enormity of the $94 billion in transactions processed through these exchanges highlights urgent needs for enhanced transaction monitoring and solid KYC protocols across major crypto platforms.
