Crypto, Sanctions, and Iran: Inside a $1 Billion Digital Trail
Iran’s Revolutionary Guard Allegedly Moved $1 Billion Through UK-Registered Crypto Exchanges
A new investigative report from TRM Labs has revealed that Iran’s Islamic Revolutionary Guard Corps (IRGC) moved approximately $1 billion in cryptocurrency through UK-registered crypto exchanges over a two-year period. The findings raise serious questions about how sanctioned entities may be using digital assets to bypass international financial controls.
The IRGC is subject to extensive sanctions imposed by the United States, the United Kingdom, and other Western governments. These sanctions are intended to block the group’s access to the global banking system. However, the report suggests that cryptocurrency has provided an alternative pathway for moving large sums of money outside traditional financial oversight.
UK-Registered Exchanges at the Center of the Activity
According to TRM Labs, two crypto exchanges registered in the United Kingdom—Zedcex and Zedxion—played a central role in processing the transactions. While listed as separate companies, investigators found strong indications that the two platforms functioned as a single operation, sharing infrastructure and operational characteristics.
The report states that a significant portion of the total trading volume on these exchanges was linked to wallets associated with the IRGC. At certain points, more than half of all transactions flowing through the platforms were allegedly connected to IRGC-linked activity, an unusually high concentration for any single entity.
How the Funds Were Moved
Most of the transactions were conducted using USDT (Tether), a dollar-pegged stablecoin designed to maintain a one-to-one value with the U.S. dollar. The funds primarily moved across the Tron blockchain, which is known for low transaction fees and fast settlement times. These features make it attractive for large-scale transfers, particularly in regions facing financial restrictions.
By relying on stablecoins rather than volatile cryptocurrencies, the IRGC was reportedly able to move value more efficiently while reducing exposure to price swings. Analysts note that this method mirrors how stablecoins are increasingly used in global payments, remittances, and, in some cases, sanctions evasion.
Sharp Increase in Activity During 2024
The report highlights a dramatic increase in IRGC-linked crypto activity during 2024. While transaction volumes were relatively modest in 2023, they surged significantly the following year, accounting for the majority of trading activity on the exchanges during that period. In 2025, overall trading volume increased, reducing the percentage tied directly to the IRGC, though the absolute dollar amounts remained substantial.
This pattern suggests that the exchanges may have initially relied heavily on IRGC-linked flows to build liquidity before attracting additional users.
Sanctions Evasion and Compliance Concerns
Experts say the findings underscore a broader challenge facing regulators worldwide. While crypto exchanges are expected to follow anti-money-laundering (AML) and know-your-customer (KYC) rules, enforcement can vary widely depending on jurisdiction and regulatory capacity.
In this case, the exchanges reportedly filed minimal corporate disclosures in the UK while processing hundreds of millions of dollars in transactions. This has raised concerns about whether existing oversight mechanisms are sufficient to detect and prevent the use of crypto platforms by sanctioned actors.
Why This Matters Globally
The alleged use of UK-registered crypto exchanges by the IRGC highlights the growing role of digital assets in geopolitics and international finance. As governments tighten controls on traditional banking channels, sanctioned groups may increasingly turn to cryptocurrency to move funds across borders.
For policymakers, the case serves as a warning that crypto regulation and enforcement must keep pace with evolving financial technologies. For investors and users, it reinforces the importance of transparency, compliance, and due diligence when engaging with digital asset platforms.
The Bigger Picture
While cryptocurrency offers legitimate benefits such as financial inclusion and faster cross-border payments, this report illustrates how the same tools can be misused when oversight is weak. The situation adds pressure on regulators in the UK and elsewhere to strengthen monitoring of crypto exchanges and close gaps that allow sanctioned entities to operate undetected.
As global attention on crypto regulation intensifies, cases like this are likely to shape future policy decisions, enforcement actions, and the long-term credibility of the digital asset ecosystem.
