US Treasury Expands Sanctions on Babak Zanjani's Crypto Network
The US Department of the Treasury has announced a new round of sanctions targeting the network of Babak Zanjani, an Iranian businessman known for his role in facilitating the movement of Iranian oil revenue. This latest action designates four individuals and nine entities for their involvement in helping Zanjani evade existing sanctions, further expanding a crackdown that has already included two crypto exchanges earlier this year.
Babak Morteza Zanjani, who holds both Iranian and UAE nationality, was first sanctioned by the Treasury in 2013 for his role in moving billions in Iranian oil money. Although these sanctions were lifted in 2016 as part of the Joint Comprehensive Plan of Action, Zanjani returned to the spotlight following his release from imprisonment in Iran.
On January 30, 2026, the Office of Foreign Assets Control (OFAC) designated Zanjani again, along with two digital asset exchanges: Zedcex Exchange Ltd. and Zedxion Exchange Ltd., both registered in the UK. This designation marked a significant moment as it was the first time OFAC had specifically linked digital asset exchanges to activities associated with the Islamic Revolutionary Guard Corps (IRGC).
Since 2022, Zedcex and Zedxion have reportedly processed over $94 billion in transactions, with a significant portion linked to IRGC activities. The recent expansion of sanctions on additional individuals and entities indicates that the Treasury perceives Zanjani's network as more extensive than previously understood.
Treasury officials have emphasized that these designations are intended to disrupt the financial channels that the Iranian regime utilizes to move money. The UK registration of the implicated exchanges raises pressing questions about regulatory oversight. If platforms allegedly facilitating IRGC-linked transactions can operate in London, it prompts concerns about the due diligence being conducted on other UK-registered exchanges.
For traders and investors, the implications of these sanctions can be severe. Assets held on platforms that are subsequently sanctioned may become frozen, leaving users unable to withdraw their funds. In the worst-case scenarios, individuals could face legal repercussions for transacting on designated platforms.
The ability of a single network to funnel $94 billion through digital asset platforms underscores the necessity for sophisticated transaction monitoring tools and robust Know Your Customer (KYC) procedures at major exchanges to detect and prevent similar activities in the future.
