U.S. Treasury Sanctions Crypto Exchanges Linked to Iran’s Financial Sector
- The U.S. Treasury’s OFAC sanctioned Zedcex and Zedxion, both UK-registered cryptocurrency exchanges.
- These exchanges allegedly facilitated over $94 billion in transactions for the Islamic Revolutionary Guard Corps (IRGC).
- The sanctions are part of a broader response to Iran’s suppression of protests that resulted in thousands of deaths.
- Babak Morteza Zanjani, linked to these exchanges, was previously convicted of embezzling billions from Iran’s national oil company.
- All U.S.-linked assets of the sanctioned exchanges are now frozen, prohibiting American entities from engaging with them.
This marks the first time entire cryptocurrency exchange entities have been sanctioned under Iran-specific financial authorities, highlighting a shift in enforcement strategies against sanctions evasion.
The action follows findings that the Central Bank of Iran purchased over $500 million in Tether’s USDT stablecoin to manipulate foreign exchange markets amid a declining rial value. (Source)
