U.S. Treasury Sanctions Digital Asset Exchanges Linked to Iranian Officials

Uk Jin

Summary

The U.S. Treasury’s OFAC said it has added to its sanctions list digital asset exchanges suspected of links to Iran’s Islamic Revolutionary Guard Corps (IRGC).
It said sanctions also cover Iranian businessman Babak Morteza Zanjani and the related 'Zedcex Exchange' and 'Zedxion Exchange'.
The U.S. Treasury Secretary said Washington will use all available tools, including virtual assets, to block the Iranian regime’s sanctions evasion using digital assets.

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The U.S. Treasury Department has added to its sanctions list digital asset exchanges suspected of having ties to Iran’s Islamic Revolutionary Guard Corps (IRGC). The move is seen as an effort to prevent sanctions evasion through the use of digital assets.

The Treasury’s Office of Foreign Assets Control (OFAC) said in a press release on the 30th (local time) that it has added Iranian officials deemed responsible for cracking down on anti-government protesters in Iran, including Iranian Interior Minister Eskandar Momeni Kalagari, to the sanctions list.

Those designated also include Iranian businessman Babak Morteza Zanjani and two digital asset exchanges linked to him—'Zedcex Exchange' and 'Zedxion Exchange'. OFAC in particular identified Zanjani as a figure who finances the IRGC. OFAC said, "(Zanjani) extorted billions of dollars in Iranian oil revenues to which the Iranian people have a legitimate right," adding, "Released from prison to launder funds for the Iranian regime, Zanjani has provided financial support to major projects that more broadly back the IRGC and the regime."

U.S. Treasury Secretary Scott Bessent said in a statement, "The Iranian regime is seeking to use digital assets to evade sanctions and sustain illicit financial activity," adding, "The United States will continue to disrupt sanctions evasion using all tools available, including virtual assets."