Iran’s IRGC Used UK Based Crypto Platforms to Bypass Sanctions, Report Says

• Report links UK crypto exchanges to Iran’s IRGC sanctions evasion
• Blockchain analysis uncovers nearly $1B IRGC activity on UK platforms
• Investigators trace IRGC crypto flows through UK registered exchanges

Fresh scrutiny has fallen on the UK’s cryptocurrency sector following claims that Iran’s Islamic Revolutionary Guard Corps moved large volumes of digital assets through British registered platforms. The activity highlights growing concerns over how sanctioned entities exploit regulatory gaps in global crypto markets. A report cited by The Washington Post links the IRGC to two UK registered exchanges, Zedcex and Zedxion. Investigators found both platforms operated as a single entity while presenting separate public identities.

TRM Labs identified that IRGC linked transactions represented 56% of the exchanges’ total trading volume between 2023 and 2025. Most transfers relied on the USDT stablecoin and flowed through the Tron blockchain, which offers speed and limited transparency. Transaction volumes tied to the IRGC increased sharply over the period under review. Activity rose from $24 million in 2023 to $619 million in 2024, before easing to $410 million in 2025.

However, analysts stressed that the combined total of nearly $1 billion carried greater significance than yearly changes. The pattern suggested the creation of repeatable financial pathways rather than isolated transfers. One former US Treasury official said the figures reflected a structural shift in sanctions evasion tactics. He noted that digital assets increasingly function as an alternative banking layer for restricted actors.

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Blockchain Tracing Exposes Hidden Payment Routes

To map the exchanges’ infrastructure, TRM Labs conducted small deposits and withdrawals across multiple wallets. Consequently, analysts uncovered internal wallet clusters and recurring transaction routes. The investigation also tracked funds linked to 187 wallet addresses designated by Israeli authorities as IRGC controlled. Several transfers connected those wallets to intermediaries operating outside Iran.

One identified transaction involved a $10 million payment sent to addresses linked to a Yemeni national. The US Treasury previously sanctioned that individual for fuel smuggling activities tied to Houthi financing. Additionally, the exchanges were linked to Babak Zanjani, an Iranian businessman associated with past oil sanctions evasion schemes. Zanjani was later convicted of embezzlement in Iran and recently released from prison after a reduced sentence.

Despite these findings, both exchanges publicly claim adherence to anti money laundering standards. Zedcex lists Iran as a prohibited jurisdiction, while Zedxion does not disclose similar restrictions. Neither platform responded to media questions regarding the allegations. Officials from Iran’s United Nations mission and the UK’s Office of Financial Sanctions Implementation also declined to comment.

Separately, the Financial Times reported that Iran is exploring cryptocurrency payments in arms related transactions. This development has intensified concerns over how digital assets intersect with security and sanctions enforcement. The report underscores mounting challenges for regulators as sanctioned groups adopt crypto based financial systems. The findings are expected to heighten oversight pressure on UK registered digital asset platforms.

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