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UK Cracks Down on Crypto Exchange Linked to Iranian Sanctions Evasion

The UK's Companies House has begun the process to dissolve Zedxion Exchange Ltd, a cryptocurrency platform accused of facilitating transactions for Iran's Islamic Revolutionary Guard Corps (IRGC).

This move, initiated around March 18, 2026, follows a U.S. Treasury sanctions designation against Zedxion and its related entity, Zedcex, for enabling Iran to evade sanctions and having ties to financier Babak Zanjani.

Investigations revealed that Zedxion reported misleading information during its incorporation, including a fictitious director named Elizabeth Newman, highlighting vulnerabilities in the pre-reform registration system.

Blockchain analytics indicate that Zedxion and Zedcex processed approximately $1 billion in IRGC-linked transactions, underscoring concerns over crypto’s role in facilitating sanctions evasion.

Zanjani, who previously faced sanctions and embezzlement charges in Iran, was linked to Zedxion's operations, raising red flags about the exchange's legitimacy.

The UK's actions are part of a broader reform under the Economic Crime and Corporate Transparency Act 2023, aiming to strengthen the integrity of company registrations.

Blockchain analytics firm Chainalysis reported a substantial increase in illicit cryptocurrency flows associated with the IRGC, totaling at least $154 billion in digital assets last year.

Despite the dissolution of Zedxion, it is important to note that this action does not freeze any underlying assets already designated by OFAC.

The ongoing scrutiny of UK-registered crypto entities signals a significant shift towards corporate transparency in financial systems to disrupt illicit financing.

As experts view these developments, they anticipate further investigations and actions against other platforms potentially involved in similar activities.