U.S. Treasury probes crypto exchanges over alleged 'evasion of Iran sanctions'

The U.S. Treasury Department is reportedly conducting investigations into virtual asset (cryptocurrency) exchanges where signs of involvement in evading Iran sanctions have been detected.

According to CoinDesk, a U.S. crypto-focused media outlet, on the 4th (local time), Ari Redbord, global head of policy at blockchain analytics firm TRM Labs, said, "The U.S. Treasury is shifting the focus of sanctions enforcement from individual wallets to virtual asset infrastructure, especially exchanges."

Redbord said, "The crux of the issue is not simply that sanctioned parties used virtual assets," adding that "the Treasury’s main concern is that sanctions-evasion activity appears to be concentrated within exchange systems."

One case identified by TRM Labs cited Zedcex. The exchange is said to have shown indications of operating on infrastructure controlled by Iran’s Islamic Revolutionary Guard Corps (IRGC).

According to TRM Labs, Zedcex is estimated to have processed about $1 billion in funds linked to the IRGC. This accounted for about 56% of its total trading volume, and the share reportedly expanded to 87% in 2024.