The UK government is taking steps to dissolve the cryptocurrency exchange Zedxion, following scrutiny over its alleged involvement in circumventing international sanctions and its purported links to Iran's Islamic Revolutionary Guard Corps (IRGC). This move comes after the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions in January, marking Zedxion as the first digital asset exchange to be sanctioned for operating within Iran's financial sector.
A Company Built on Fabricated Identities
The operations of Zedxion are reportedly tied to prominent Iranian financier Babak Morteza Zanjani, who was previously convicted for embezzling billions in oil revenues. OFAC has identified Zanjani not only as a director but also as the financial backer of Zedxion, making the exchange a prime target for Western sanctions enforcement.
What Made Zedxion Unusual
The trading platform featured its own native token, ZEDX, which it promoted as a store of value pegged to a basket of major cryptocurrencies. Zedxion maintained a facade of legitimacy through its registration in the UK, with filings at the UK Companies House, and processed a significant volume of transactions before coming under regulatory scrutiny.
OFAC's January sanctions were a landmark event, representing the first time the U.S. Treasury sanctioned a digital asset trading platform for processing transactions on behalf of the IRGC. The UK's confirmation of the dissolution on March 19, 2026, signifies the end of a multi-year effort to evade sanctions under the guise of a legitimate crypto business.