British authorities have ordered the dissolution of Zedxion, a crypto trading platform found to be involved in transferring more than $1 billion to entities associated with Iran’s Islamic Revolutionary Guard Corps (IRGC). Regulatory officials stated the action came after investigations confirmed fraudulent practices in the company’s registration and direct connections to organizations under international sanctions.
Platform’s Identity Fabrications and Founders Exposed
Zedxion, operating as Zedxion Exchange Ltd since May 2021, was initially incorporated with Babak Morteza as its director and primary controller. Investigators later found Morteza’s details aligned with Babak Zanjani, an Iranian businessman already targeted by global sanction measures due to facilitating oil revenue for Iranian state entities. Zanjani has served prison time for major financial crimes in Iran.
Following Morteza’s removal, records named Elizabeth Newman as the new director. However, further scrutiny showed that images used to show Newman in marketing were actually generic stock photos. Regulators described these details as evidence of purposeful manipulation and false corporate representations aimed at concealing the platform’s real leadership and objectives.
Analysis Reveals Scale of Iranian-Connected Crypto Transfers
TRM Labs, a blockchain analytics company, confirmed that both Zedxion and an affiliated entity called Zedcex processed approximately $1 billion in crypto transfers tied to the IRGC. Initially, 56% of Zedxion’s transaction volume was linked to IRGC-related activity, but by 2024, this figure had jumped to 87%, corresponding to $619 million just in this period. The findings presented Zedxion as a core channel for facilitating Iranian state-linked financial flows through crypto infrastructure.
In regulatory evaluations, these activities were said to indicate an explicit strategy for bypassing established anti-money laundering controls and sanctions observance policies. Both Zedxion and Zedcex maintained their operations amid ongoing international sanctions regimes, handling Iranian funds through the global crypto ecosystem.
The existence of this network led multiple governments, including US agencies, to begin formal enforcement actions. Key actors such as Zanjani were found to have previously funneled billions in state oil revenue, expanding concern about cryptocurrency’s potential in facilitating restricted capital flows.
Sanctions, Shutdowns, and Global Regulatory Responses
The US Treasury’s Office of Foreign Assets Control placed both Zedxion and Zedcex on its sanctioned entities list, confirming their designation as facilitators for sanctions evasion. Authorities highlighted that platforms with unresolved or hidden ownership structures, along with deliberately falsified documents, risk becoming vectors for illicit state financing and international money flows.
In parallel to the Zedxion inquiry, American officials are investigating additional platforms, including the major exchange Binance, for allegedly similar activities involving over $1 billion in transfers linked to sanctioned parties. These cases reflect a broader regulatory campaign to close loopholes and fortify sector controls against illicit cryptocurrency use.
Regulatory authorities emphasized that effective digital identity verification and continuous transaction monitoring remain vital for preventing digital assets from being exploited for unlawful state transactions. The Zedxion case has drawn renewed attention to structural weaknesses in crypto oversight, prompting enforcement agencies to pursue more proactive measures globally.
