UK Shuts Down Zedxion Crypto Exchange Linked to Iran IRGC

TLDR

• UK dissolves Zedxion for processing $1B+ in IRGC-linked crypto transactions.
• Fake directors and stock photos exposed Zedxion’s shady corporate setup.
• IRGC-related trades grew to 87% of Zedxion’s total platform volume by 2024.
• U.S. Treasury sanctions target Zedxion and sister platform Zedcex.
• Case underscores global crypto compliance gaps and sanctions evasion risks.

Britain’s authorities have moved to dissolve Zedxion, a cryptocurrency exchange accused of processing funds for Iran’s Islamic Revolutionary Guard Corps. Companies House cited misleading information in the company’s incorporation documents. Zedxion’s closure comes after investigations revealed potential links to sanctioned Iranian entities.

The exchange operated under Zedxion Exchange Ltd, incorporated in May 2021. Initial records listed Babak Morteza as director and person with significant control. Authorities later discovered that Morteza’s details matched those of sanctioned Iranian businessman Babak Zanjani.

Zedxion reportedly used fictitious identities to operate, with Elizabeth Newman appointed as director after Morteza’s removal. Investigators found stock images represented Newman in promotional material. The discovery raised further concerns about Zedxion’s corporate transparency and legitimacy.

Investigation Reveals High Volume of IRGC-Linked Transactions

Analysis by TRM Labs found Zedxion and its sister platform Zedcex processed roughly $1 billion in IRGC-linked transactions. Initially, these transactions represented 56 percent of total platform volume. By 2024, the share increased to 87%, reaching over $619 million.

The data indicates Zedxion served as a major channel for Iranian state-related funds. The high transaction volume suggests deliberate structuring to avoid sanctions scrutiny. Regulators highlight the exchange’s operational design as a potential evasion mechanism.

Zedxion and Zedcex maintained activity across international crypto networks. Investigations suggest both platforms facilitated Iranian financial flows despite global sanctions. These actions prompted regulatory scrutiny from multiple authorities, including the U.S. Treasury.

Sanctions and Global Regulatory Actions

The U.S. Treasury’s Office of Foreign Assets Control designated Zedxion and Zedcex for assisting Iran’s sanctions evasion. Zanjani, linked to the platforms, previously laundered billions in oil revenue for Iranian state entities. His prior conviction for embezzlement and subsequent sentence commutation highlight the risks of facilitating sanctioned networks.

Zedxion’s dissolution aligns with broader enforcement trends targeting crypto channels for illicit state funding. Globally, authorities monitor exchanges to prevent sanctioned entities from moving funds. U.S. regulators are simultaneously investigating Binance for potentially similar violations exceeding $1 billion.

Zedxion’s operations illustrate vulnerabilities in crypto compliance and regulatory oversight. Authorities aim to close loopholes used for illegal financial transfers. The case reinforces the importance of verifying identities and monitoring transaction patterns in digital finance.

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