Zedxion, a cryptocurrency trading platform operating under the name Zedxion Exchange Ltd since May 2021, is shrouded in complex identity fraud and deep ties to Iran. Initially, the company registration indicated that its director and primary controller was Babak Morteza. However, a deeper investigation revealed that Morteza's identity closely matches that of Iranian businessman Babak Zanjani. Zanjani has been sanctioned by the international community for transferring oil revenues for Iranian state entities and is currently serving time for significant financial crimes committed in Iran.
After Morteza's exit, Elizabeth Newman was listed as the new director. Yet further scrutiny unveiled that the promotional photo of Newman was actually generic stock imagery. Regulators believe these actions indicate deliberate manipulation and false corporate information, aimed at concealing the platform's true leadership and operational intentions.
A report from blockchain analytics firm TRM Labs confirmed that Zedxion and its affiliated entity Zedcex processed approximately $1 billion in cryptocurrency transactions related to the Islamic Revolutionary Guard Corps (IRGC) of Iran. Initially, 56% of Zedxion's trading volume was linked to the IRGC, a figure that soared to 87% by 2024, involving $619 million during this period. These data points suggest that Zedxion has become a central channel for transferring state-related funds from Iran through cryptocurrency infrastructure.
In regulatory assessments, these activities are viewed as a clear strategy to evade existing anti-money laundering (AML) controls and sanctions compliance policies. Zedxion and Zedcex have maintained their operations by processing Iranian funds through the global crypto ecosystem amid ongoing international sanctions.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has listed Zedxion and Zedcex as sanctioned entities, confirming their role as facilitators of sanctions evasion. Authorities emphasize that platforms with unresolved or hidden ownership structures and deliberately falsified documents are highly likely to become vehicles for illegal state financing and international capital flows.
Regulators point out that effective digital identity verification and ongoing transaction monitoring are crucial to preventing digital assets from being used for illicit state transactions. The Zedxion case has once again raised concerns about structural weaknesses in cryptocurrency regulation, prompting law enforcement agencies to take more proactive measures globally.