Cryptocurrency and Sanctions Evasion
According to an investigation cited by The Washington Post and conducted by TRM Labs, the Islamic Revolutionary Guard Corps (IRGC) of Iran has moved nearly $1 billion through two cryptocurrency exchanges registered in the UK. These transactions were aimed at circumventing international financial sanctions imposed on Iran.
Exchanges and Financial Flows
The findings reveal that the platforms known as Zedcex and Zedxion are, in fact, operated by the same entity under different branding. Between 2023 and 2025, transactions linked to the IRGC accounted for 56% of the total trading volume on these platforms, with most of the activity involving USDT on the Tron blockchain.
Regulatory and Compliance Concerns
This incident has once again raised concerns about cryptocurrency regulation and compliance. Despite the UK’s strict anti-money laundering rules for financial activities, the IRGC managed to bypass the international sanctions regime using crypto platforms, highlighting weaknesses in the current regulatory framework.
- TRM Labs flagged the exchanges for highly suspicious activity
- 56% of the total trading volume linked to the IRGC
- Most funds moved via USDT on the Tron network