TLDR:
- Zedcex and Zedxion processed $1 billion in IRGC-linked stablecoin transactions between 2023 and 2025.
- IRGC-related flows peaked at 87% of total exchange volume in 2024 before declining to 48% in 2025.
- Exchanges transferred over $10 million directly to US-sanctioned Houthi terrorist financier Sa’id al-Jamal.
- Babak Zanjani, previously sanctioned for laundering billions, connected to Zedxion through corporate records.
Two cryptocurrency exchanges registered in the United Kingdom processed approximately $1 billion in stablecoin transactions linked to Iran’s Islamic Revolutionary Guard Corps between 2023 and 2025.
TRM Labs research revealed that Zedcex and Zedxion operated as front companies for the sanctioned military organization, handling funds that represented 56% of their total transaction volume.
Corporate Structure Masks Operational Reality
Zedcex Exchange Ltd and Zedxion Exchange Ltd incorporated in the UK as separate legal entities but functioned as a single operation.
Zedxion received its incorporation in May 2021, with Babak Morteza assuming directorship in October that year.
US and EU authorities previously sanctioned Babak Morteza Zanjani in 2013 for channeling funds to an IRGC company.
Zedcex incorporated in mid-2022, days after Zanjani formally exited Zedxion. Both companies shared identical virtual office addresses and listed the same successor director.
The exchanges filed dormant accounts through June 2025 despite processing billions in cryptocurrency transactions.
This coordinated structure allowed the operation to spread across multiple legal shells while maintaining unified control.
Zanjani’s background as a sanctions evasion financier adds context to the exchanges’ activities. Iranian authorities arrested him for embezzling millions from Iran’s National Oil Company.
His sentence received commutation in 2024 after repaying the funds. By 2025, Zanjani re-emerged through DotOne Holding Group, operating across cryptocurrency, logistics, and telecommunications sectors.
Blockchain Analysis Reveals IRGC Connections
TRM Labs connected Zedcex-attributed wallets directly to addresses designated by Israeli authorities as IRGC property under Administrative Seizure Order ASO-43/25.
The National Bureau for Counter Terror Financing issued this order on September 1, 2025. Tether subsequently blocklisted many of these wallet addresses.
IRGC-linked flows through the exchanges increased from $24 million in 2023 to $619 million in 2024. The proportion of IRGC-related transactions peaked at 87% of total volume in 2024.
In 2025, IRGC-linked activity declined to $410 million, representing 48% of total transactions as other activities expanded.
The exchanges conducted nearly all transfers in USDT on the TRON blockchain. Wallets routed funds between IRGC-controlled addresses and Iranian crypto services including Nobitex, Wallex, and Aban Tether.
Many wallets held Zedxion (USDZ), a dollar-pegged token promoted through Persian-language Telegram channels. TRM analysts used USDZ holdings to map the exchange infrastructure.
Payment Integration and Terrorist Financing Links
Zedxion integrated with Zedpay, a mobile payment processor operating from Turkey. Zedpay maintained relationships with Turkish financial entities including Vepara and Vakif Katilim.
Turkish regulators suspended Vepara’s license amid anti-money laundering concerns. This integration extended crypto infrastructure into fiat settlement capabilities.
On-chain analysis revealed direct transfers exceeding $10 million to Sa’id Ahmad Muhammad al-Jamal in late 2024.
US Treasury sanctioned al-Jamal for providing material support to the IRGC and operating a smuggling network generating revenue for Houthis in Yemen. The transfers occurred without intermediary routing through brokers or mixers.
ChainUp, a Singapore-based infrastructure provider, hosted portions of the exchange operations. This white-label service allowed rapid scaling while maintaining separate wallet infrastructure for distinct activities.
The hybrid model enabled the exchanges to process high-value transactions while presenting as conventional trading platforms.
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