Iran’s IRGC Moves $1 Billion Through UK Crypto Exchanges

TLDR

• IRGC funneled $1B through UK crypto exchanges since 2023.
• Zedcex handled 87% of IRGC crypto transactions at peak in 2024.
• Zedxion mirrored Zedcex, funding IRGC-linked groups abroad.
• Stablecoins enabled low-volatility, rapid, cross-border transfers.
• UK-based exchanges highlight global challenges in crypto oversight.

Iran’s Islamic Revolutionary Guard Corps (IRGC) has transferred roughly $1 billion through two UK-based cryptocurrency exchanges since 2023. The exchanges, Zedcex and Zedxion, facilitated the bulk of these transactions using Tether on the Tron network. The IRGC’s use of these platforms highlights an advanced effort to bypass international sanctions.

Investigations reveal that IRGC-linked activity grew sharply, from $24 million in 2023 to $619 million in 2024, and then $410 million in 2025. The exchanges operated under separate names but shared directors, addresses, and infrastructure, suggesting coordinated management. Regulatory filings showed both entities repeatedly claimed dormant status despite substantial on-chain activity.

The IRGC’s presence on these exchanges accounted for 56% of all transaction volume over the three years. Analysts observed that the IRGC moved funds efficiently between offshore intermediaries and domestic Iranian platforms. These activities appear to support long-term financial operations rather than one-off transfers.

Zedcex Supports IRGC Funding Operations

Zedcex emerged as the primary channel for IRGC transactions, processing millions in USDT for sanctioned entities. The platform routed payments directly to Iranian and regional partners without requiring complex intermediaries. Zedcex also connected to wallets already designated as IRGC-controlled by Israeli authorities.

Corporate records link Zedcex to Babak Zanjani, a businessman previously sanctioned for helping Iran evade oil sanctions. Zanjani’s involvement reflects the IRGC’s reliance on experienced financial operatives. The exchange’s activity peaked in 2024, with IRGC flows making up 87% of total transactions.

Zedcex integrated with other financial platforms, including Turkish payment processors, enabling broader fiat settlement and cross-border transfers. The infrastructure allowed the IRGC to fund domestic and regional operations efficiently. These connections suggest a deliberate strategy to establish a shadow financial network.

Zedxion’s Role in IRGC Financial Networks

Zedxion mirrored Zedcex operations and shared management and addresses, indicating operational continuity. IRGC-linked transactions accounted for nearly half of Zedxion’s total volume by 2025. The platform facilitated direct transfers to individuals sanctioned by the Houthis and other groups.

The IRGC used Zedxion for secure fund movement and operational financing beyond Iran’s borders. Stablecoins provided a low-volatility option for rapid transfers without triggering international scrutiny. Connections between Zedxion and domestic exchanges like Nobitex further expanded the IRGC’s financial reach.

Transactions on both exchanges highlight a growing trend of sanctioned states using crypto to bypass restrictions. The IRGC’s activity demonstrates organized planning and sophisticated integration across multiple platforms. The use of UK-registered exchanges underscores the challenges authorities face in monitoring cross-border cryptocurrency flows.

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