A recent report has unveiled that the Iranian Revolutionary Guard Corps (IRGC) has been transferring approximately $1 billion through two cryptocurrency exchanges registered in the UK since 2023. Published by the Washington Post and prepared by blockchain analysis firm TRM Labs, the report reveals these transactions were strategized to circumvent international sanctions. The analysis suggests that Iran has systematically transformed cryptocurrencies from individual experiments into a robust financial infrastructure. The examination indicates that London-based financial monitoring systems are indirectly part of this network.
Network Built Through UK-Registered Exchanges
According to findings by TRM Labs, the cryptocurrency exchanges Zedcex and Zedxion operate as extensions of a single operation under different brand names. It was discovered that 56% of the total transaction volume on these platforms between 2023 and 2025 originated from IRGC-linked wallets. Most transactions utilized Tether’s USDT stable cryptocurrency on the Tron network.
The volume of IRGC-related activities witnessed a striking increase in a short span. In 2023, transactions amounted to $24 million, surged to $619 million in 2024, and accrued an additional volume of $410 million in 2025. Experts suggest these figures show Iran positioning the crypto market not just as an alternative payment method but as a shadow banking system to counter sanctions.
Investigators deposited and withdrew small amounts to analyze the exchanges’ internal wallet structure, then meticulously traced fund flows. Using this method, 187 transactions linked to different wallet addresses, reportedly under IRGC control by Israeli authorities, were mapped out.
Cryptocurrency Funds, Arms Trade, and Past Sanction Networks
Among tracked transfers was a $10 million payment from an IRGC-linked wallet to addresses under a Yemeni individual’s control. This person was sanctioned by the U.S. in 2021 for smuggling Iranian oil to fund the Houthis. This example highlights the active use of crypto transfers for financing regional proxy groups.
TRM Labs also associated the exchanges with Babek Zencani, a businessman previously aiding Iran in bypassing oil sanctions. He was convicted of corruption for establishing a financial network for the Iranian government, later pardoned from the death penalty to imprisonment, and recently released. The findings indicate that past sanction-evasion methods are being revived through digital assets.
Both exchanges claim adherence to anti-money laundering rules on their websites. Zedcex lists Iran among banned countries, while Zedxion does not impose similar restrictions. Neither the exchanges, Iran’s UN mission, nor the UK Treasury’s Sanctions Office responded to inquiries.
