A new report has revealed that Iran’s Islamic Revolutionary Guard Corps (IRGC) moved approximately $1 billion in cryptocurrency through two United Kingdom–registered exchanges over the past two years, highlighting how digital assets are being used to evade international sanctions.
Blockchain intelligence firm TRM Labs tracked the flow of funds, which were primarily conducted using Tether (USDT) on the TRON network. The funds were routed through two exchanges, identified as Zedcex and Zedxion, which together processed the vast majority of the transactions.
The findings, detailed in a report cited by The Washington Post, illustrate how state actors are leveraging lightly regulated cryptocurrency platforms to bypass traditional financial controls and channel money to sanctioned groups and affiliates.
Despite being registered in the UK, the exchanges reportedly failed to prevent or flag transactions tied to the IRGC—an entity heavily sanctioned by the U.S. and other nations for its military activities across the Middle East.
This case underscores persistent regulatory vulnerabilities in the global crypto sector, where large-scale transfers can occur with limited detection. Analysts say it demonstrates how cryptocurrency’s borderless nature can be co-opted for geopolitical purposes, allowing sanctioned entities to sustain financial operations outside the conventional banking system.
The revelation is likely to intensify calls for stricter oversight of crypto exchanges and enhanced compliance measures to prevent the misuse of digital assets in circumventing international sanctions.
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