This is OFAC’s first designation of exchanges for operating within Iran’s financial sector.
The U.S. Treasury announced new sanctions linked to Iran’s financial network. This time, the focus moved to crypto. The Treasury’s Office of Foreign Assets Control, also known as OFAC, sanctioned two UK-based crypto exchanges called Zedcex and Zedxion. Officials said these platforms helped Iran move money and avoid U.S. sanctions.
This marks the first time OFAC has targeted digital asset exchanges for operating inside Iran financial system. As a result, U.S. persons are now banned from dealing with these firms. With any assets linked to them in the U.S. are frozen.
According to the Treasury, the exchanges were tied to Iranian businessman Babak Zanjani. He was once jailed for stealing billions in oil revenue. Authorities say he later helped move money for the Iranian regime after his release. Blockchain data shows that addresses linked to the case processed more than $389 million. Many of these funds had links to the Islamic Revolutionary Guard Corps, or IRGC.
OFAC also sanctioned seven Iranian individuals, including senior security officials. They accused them of helping with money laundering and repression. Officials said crypto tools made it easier to hide the trail of funds. That is why they moved to block the exchanges and the people behind them.
This decision sets a new standard for crypto enforcement. Before this, OFAC mainly targeted wallets or individuals. Now, it has gone after entire exchanges for helping a sanctioned economy. This sends a clear message to crypto platforms around the world. They must check who uses their services and where the money goes.
Otherwise, they risk losing access to U.S. markets. U.S. Treasury officials said Iran has tried to use digital assets to escape pressure from sanctions. They believe this step will slow that effort. At the same time, it raises the cost of doing business for any exchange that ignores rules. Compliance is no longer optional.
The move also shows how crypto now sits inside global politics. Digital assets are no longer just a tech story. They are part of financial warfare. Analysts expect more actions like this in 2026. Other countries may copy the U.S. Treasury approach. For traders and users, this adds risk. Exchanges that operate in gray areas could suddenly face bans.
Still, regulators argue this helps clean the system. They want to cut off funding for illegal activity and state networks. In the short term, the sanctions may disrupt some flows. In the long term, they could push crypto firms to work closer with regulators. The message is simple. Crypto is not outside the law. It now plays on the same field as banks and payment firms.
