UK Closes Zedxion Crypto Exchange Tied to Iran’s IRGC

TLDR

• The UK has dissolved Zedxion for processing over $1 billion in cryptocurrency transactions linked to the IRGC.
• The exchange’s dubious corporate structure, featuring fake directors and stock photos, was exposed.
• By 2024, transactions connected to the IRGC constituted 87% of Zedxion’s total platform volume.
• The U.S. Treasury has imposed sanctions on Zedxion and its associated platform, Zedcex.
• This case highlights global deficiencies in crypto compliance and the risks of sanctions evasion.

(SeaPRwire) –   British 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 within the company’s incorporation documents. Zedxion’s closure follows investigations that revealed potential connections to sanctioned Iranian entities.

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

Zedxion reportedly utilized fictitious identities for its operations, with Elizabeth Newman appointed as director after Morteza’s removal. Investigators found that stock images were used to represent Newman in promotional material. This discovery raised further concerns regarding Zedxion’s corporate transparency and legitimacy.

Probe Uncovers Extensive IRGC-Related Transaction Volume

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

The data indicates that Zedxion served as a primary channel for Iranian state-related funds. The high transaction volume suggests a deliberate structure designed to avoid sanctions scrutiny. Regulators are highlighting the exchange’s operational design as a potential mechanism for evasion.

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

Sanctions and Worldwide Regulatory Measures

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, had previously laundered billions in oil revenue for Iranian state entities. His prior conviction for embezzlement and subsequent sentence commutation underscore the risks of facilitating sanctioned networks.

Zedxion’s dissolution aligns with broader enforcement trends targeting crypto channels used 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 cryptocurrency compliance and regulatory oversight. Authorities aim to close loopholes exploited for illegal financial transfers. This case reinforces the importance of verifying identities and monitoring transaction patterns in digital finance.