Iran's Revolutionary Guard Moved $1 Billion in Crypto Through UK-Registered Exchanges, Report Finds

Iran’s Islamic Revolutionary Guard Corps (IRGC) has moved approximately $1 billion in cryptocurrency through two UK-registered exchanges since 2023, according to a report by blockchain intelligence firm TRM Labs. The exchanges, Zedcex and Zedxion, appear to operate as a single entity and processed the majority of these transactions in Tether's USDT stablecoin on the Tron network. The findings suggest Iran is increasingly leveraging digital currency to bypass international sanctions and sustain financial operations.

The report indicates that IRGC-linked transactions accounted for 56% of the exchanges' total volume between 2023 and 2025. In 2024, these transactions peaked at 87% of the total volume. This represents a strategic shift toward using crypto infrastructure to sustain financial flows amid international pressure.

Both Zedcex and Zedxion claim to comply with anti-money laundering regulations, but the scale of their transactions raises serious compliance concerns. The report notes that neither exchange responded to questions from The Washington Post. The findings highlight a growing trend of sanctioned actors using lightly regulated crypto platforms to move large sums of money.

Why Did This Happen?

Iran has long used various methods to evade sanctions, including the oil trade and regional partnerships. The rise of digital currencies has provided new avenues for these activities. The IRGC has moved from one-off crypto transactions toward building dedicated financial infrastructure to sustain its operations.

Experts believe the use of crypto allows Iran to move money quickly across borders while avoiding the scrutiny of traditional banking systems. The report also notes that USDT on the Tron network is favored for its low cost, high liquidity, and ease of use.

How Did Markets React?

The growing use of crypto by sanctioned actors is drawing attention from regulators and analysts. In 2025, illicit cryptocurrency addresses received a record $154 billion, a 162% increase from 2024. This trend reflects broader global tensions, as nations face increasing economic pressure and seek alternative financial mechanisms.

Stablecoins have become a dominant force in illicit transactions, with 84% of all illicit activity involving these assets. This mirrors the growth of stablecoins in the broader crypto market, where they are used for cross-border transfers and liquidity management.

What Are Analysts Watching Next?

Regulators are now focused on identifying and disrupting the operation of illicit financial infrastructure in the crypto space. Unlike traditional money laundering cases, this new phase involves sanctioned actors operating within the guise of legitimate crypto businesses.

One key concern is the ability of exchanges to detect and block transactions linked to sanctioned entities. The fact that Zedcex and Zedxion processed these transactions without apparent red flags suggests a need for stronger compliance measures.

The report also highlights the broader geopolitical implications of crypto finance. The ability to move large sums of money virtually unnoticed raises concerns about the use of digital currencies for funding regional conflicts and supporting terrorist activities.

Analysts are watching closely to see how regulators will respond to these developments. The challenge is no longer just about tracing illicit flows, but about understanding who controls the platforms and how they operate.

The case of Zedcex and Zedxion demonstrates the evolving nature of financial crime in the digital age. As crypto continues to grow in adoption, so too will the need for robust oversight and enforcement mechanisms.