The world of cryptocurrency is continually evolving, raising questions about regulation and illicit activities. A recent report by a blockchain analytics firm reveals alarming connections between a UK-based crypto exchange and Iran’s powerful military organization.
Uncovering Financial Ties
According to a recent study conducted by crypto analytics company ChainWatch, the flow of digital currency reached approximately $1 billion on the Zedxion Exchange and its sister platform, Zedcex. These transactions were found to be linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), highlighting serious concerns about financial transparency in the crypto space.
In 2024, the proportion of transactions associated with the IRGC was about 90%, although this figure dropped to 50% in 2025. Despite the decline in volume, the scale of financial exchanges tied to this military group remained substantial.
In response, regulators in the UK have begun taking significant actions against these exchanges.
The UK’s regulatory body, Companies House, has initiated a compulsory strike-off procedure against Zedxion Exchange Ltd. The authorities discovered that the company had submitted false corporate filings, including fictitious directors.
Fraudulent Leadership and False Identities
One of the fictitious directors registered for the exchange was an individual purportedly named Elizabeth Newman, who was claimed to be from the Dominican Republic.
However, an investigation by the Organized Crime and Corruption Reporting Project (OCCRP) revealed that this name appeared to be a complete fabrication. The individual’s likeness was traced back to generic stock images used in promotional materials.
Before the emergence of “Newman,” the position of director was held by Babak Morteza, whose details conveniently matched those of Babak Zanjani. Zanjani is a well-known Iranian businessman who has faced severe legal repercussions in Iran for fraud regarding state oil revenues.
While Zanjani’s death penalty was commuted in 2024, he resumed business activities, and Morteza controlled Zedxion for almost a year. Zanjani also allegedly heads a broad portfolio of businesses in crypto and telecommunications sectors, which have been previously identified as potential avenues for bypassing international restrictions.
The U.S. Steps Up to Neutralize Threats
This UK crackdown follows sanctions introduced by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) earlier this year.
Both Zedxion and Zedcex were specifically mentioned. According to OFAC, Zanjani was a significant figure in financing projects benefiting the IRGC and the Iranian regime as a whole.
Despite the apparent dormancy of accounts reported for these exchanges, the activity levels reported were strikingly high, raising eyebrows among cryptocurrency analysts.
In 2023, the UK legislative landscape shifted with the introduction of the Economic Crime and Corporate Transparency Act, empowering regulatory bodies to better scrutinize the identities of directors and to ensure that registered businesses operate lawfully.
The Zedxion incident presents a noteworthy application of these new powers, aiming to increase oversight in the cryptocurrency industry.
Image sourced from Unsplash, data visualized via TradingView
