The US Treasury’s Office of Foreign Assets Control (OFAC) has expanded its sanctions against Iranian businessman Babak Zanjani and his Dot One commercial network, targeting a wider array of firms including ZEDX DMCC, ZedPay, and BZ Diamond. This latest action broadens enforcement beyond cryptocurrency exchanges, extending into gold production, payments, and logistics infrastructure.
Key sanctioned entities and their connections
ZEDX DMCC, a Dubai-based commercial company, stands out among the newly sanctioned firms. The move illustrates the network’s ongoing realignment toward the United Arab Emirates, with Dubai now serving as a commercial center for these operations. Recent research from blockchain intelligence firm TRM Labs highlights that the Zanjani network has steadily shifted activity from short-lived UK companies to more stable UAE-registered entities.
The list also includes ZedPay, recognized as the group’s primary payment platform. TRM Labs had previously linked ZedPay to exchange operations and identified strong ties to Zedxion and related businesses, pointing to payment processing as a core component rather than a peripheral role. Corporate documents and branding further confirmed these relationships.
BZ Diamond DMCC, a precious metals company, is also now under sanctions. Public records connect Bahareh Zanjani to BZ Diamond, with technical infrastructure revealing shared administration among network members. The company’s addition signals OFAC’s willingness to penalize non-crypto businesses if they support sanctioned activity.
ZEDX DMCC, ZedPay, and BZ Diamond have been identified as key elements of the commercial infrastructure supporting Babak Zanjani’s network, according to TRM Labs’ earlier investigations. OFAC’s latest actions reflect the expanding scope of US enforcement against international sanctions evasion.
Mini dictionary: TRM Labs – A blockchain intelligence provider known for tracking illicit activity in crypto networks and providing advanced analytics for government agencies and compliance teams.
Sanctions extend to key network personnel
In addition to targeting businesses, the Treasury sanctioned Mehdi Rezazadeh, the chief executive of ZedPay. Prior research by TRM Labs had identified him as a significant figure within the Zedxion ecosystem. Rezazadeh is reportedly linked to mining investment discussions spanning Africa, Russia, China, and Iran. UK records also show his previous connections to various network-associated companies.
By naming Rezazadeh individually, OFAC signals a shift in enforcement focus, seeking increased accountability for executives as well as their organizations. Reports from TRM Labs indicate a pattern of shared leadership and personnel moving throughout the group’s entities in crypto, payments, and logistics.
Diversified operations and evolving structures
TRM Labs documented how the Zanjani network adapted by cycling through various corporate formations. UK-based companies often became inactive or adjusted their leadership, replaced by new business entities in differing jurisdictions. Despite these legal changes, much of the network’s digital and technical infrastructure stayed remarkably consistent. Domain registrations and technical oversight frequently carried over across renewed companies.
The group’s activities reach beyond cryptocurrency exchanges, touching aviation, rail transportation, commodity trading, travel, and precious metals. While each company appears autonomous, together they form a risk-spreading structure that endures regulatory scrutiny and company closures.
TRM Labs advocates for investigative strategies that go beyond tracking blockchain wallets and exchange activity. The firm recommends combining on-chain analysis with reviews of corporate records and domain registrations, arguing this approach is necessary to understand the full scope of modern sanctions evasion.
The US Treasury’s latest actions reflect what authorities view as a more realistic understanding of complex global financial networks, signaling that enforcement will address not only point-of-sale crypto activity but also broader commercial and technical support systems underpinning sanctioned operations.
