On July 24, the US Treasury's Office of Foreign Assets Control (OFAC) designated four people and nine companies tied to Babak Zanjani's sanctions evasion network, expanding the crackdown on illicit financial flows connected to Iran's Islamic Revolutionary Guard Corps (IRGC).
The sanctions hit Zanjani’s core operation, Dot One Value Creation Group, along with affiliated firms like DotOne Gold Company and Zedpay. These entities operate offshore and form the backbone of a system moving massive sums in both traditional and digital assets.
Crypto Exchanges at the Center of a $94 Billion Web
Two cryptocurrency exchanges, Zedcex and Zedxion, stand out as major hubs within this network. Since 2022, they processed over $94 billion in transactions, making their January 2026 OFAC designation the first time digital asset platforms tied to IRGC activity were sanctioned. This latest wave targets the supporting infrastructure including financial and transport companies that facilitate ongoing operations.
One notable element is the Tala Token, a gold-backed digital currency linked to DotOne Gold Company. The Treasury highlighted this token as evidence of how Zanjani’s network interconnects physical commodities with blockchain-based assets to sidestep sanctions.
Babak Zanjani has been under US sanctions since 2013 for handling billions in Iranian oil revenue. His sanctions were briefly lifted in 2016 during nuclear deal talks but were reinstated later as US policy hardened. An Iranian court sentenced him to death for embezzlement in 2016, though his sentence was commuted in 2024. Renewed OFAC action in early 2026 marked his shift towards cryptocurrency involvement.
The designation carries significant implications for crypto markets and compliance programs. The Tala Token’s association with sanctioned entities raises flags about risks in real-world asset tokenization, where underlying commodities might be tied to illicit actors. Exchanges and financial institutions face pressure to block and report any assets connected to this network. Given the scale of $94 billion in transactions, even indirect exposure could trigger regulatory scrutiny.
