Babak Zanjani accused of using crypto exchanges to process billions for Iran
Updated
Updated · The Wall Street Journal · May 4
Babak Zanjani accused of using crypto exchanges to process billions for Iran
7 articles · Updated · The Wall Street Journal · May 4
The US Treasury said Zedcex and Zedxion handled more than $94bn since 2022, including wallets linked to Iran's Revolutionary Guard, and sanctioned Zanjani in January.
Treasury designated the exchanges as terror assets, while blockchain firm TRM Labs said they moved over $10m tied to financing Yemen's Houthi rebels; Zanjani denied the allegations.
Once sentenced to death over a $2.7bn corruption case, Zanjani was released last year and has since resurfaced with new business ventures, underscoring Iran's evolving sanctions-evasion networks.
How did one man build a $94 billion crypto network for Iran, and can this shadow financial system truly be stopped?
Are stablecoins becoming the default currency for state-sponsored sanctions evasion and global conflict?
$1 Billion UK Crypto Exchange Network Uncovered Funding IRGC and Yemeni Houthis Through Sanctions Evasion
Overview
In January 2026, the US imposed historic sanctions on Iranian businessman Babak Zanjani and two UK-registered cryptocurrency exchanges, Zedcex and Zedxion, for facilitating sanctions evasion benefiting the IRGC. These exchanges, controlled through a fabricated identity and managed by Zanjani's partner Solmaz Bani, processed over $1 billion in stablecoin transactions, including funds linked to terrorist financing. Despite UK regulatory actions focusing on corporate transparency violations, the US froze assets and barred dealings, highlighting enforcement gaps. This network was part of a broader multi-sector scheme, the DotOne Network, which combined crypto, aviation, and logistics to bypass sanctions. The case exposed critical regulatory weaknesses, prompting significant UK reforms to enhance corporate transparency and combat illicit finance.