US Treasury sanctions Iran-linked crypto exchanges for first time

The US Treasury just dropped the hammer on two UK-registered crypto exchanges tied to Iran's financial system — marking the first time Washington has directly targeted digital asset platforms in its sanctions game. This isn't just a slap on the wrist; it's a full-blown crackdown on Iran's attempts to bypass international restrictions using crypto.

In a statement on Friday, the Treasury's Office of Foreign Assets Control (OFAC) sanctioned Zedcex Exchange Ltd. and Zedxion Exchange Ltd., accusing them of processing massive volumes for IRGC-linked entities. Zedcex alone has handled over $94 billion in transactions since 2022 — yeah, you read that right, billions.

Treasury Secretary Scott Bessent didn't hold back: "Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people." This move is part of a broader sweep that also hit Iranian officials like Eskandar Momeni Kalagari, the interior minister overseeing brutal crackdowns, and Babak Morteza Zanjani, a businessman convicted of embezzling billions from Iran's oil revenue.

Last week, blockchain analytics firm Elliptic revealed that Iran's central bank accumulated more than $500 million worth of Tether's USDt during a severe economic crisis, likely using the stablecoin to prop up the collapsing rial or settle international trade. This isn't just small-time stuff — it's state-level crypto ops mirroring traditional central bank maneuvers.

OFAC also sanctioned senior IRGC commanders and security officials across multiple provinces, citing evidence of live-fire attacks on protesters, forced burials, and widespread intimidation. Bessent accused Tehran of diverting oil revenues toward weapons and militant proxies instead of supporting its people, vowing to keep targeting networks that exploit digital assets for illicit finance.

Related: Trump says shutdown deal near, but markets remain on edge; Iran is cut off from the internet: Here's how crypto could still work; How crypto laws changed in 2025 — and how they'll change in 2026.