Report Claims Two UK Crypto Exchanges Used to Support Iran's Islamic Revolutionary Guard Corps (IRGC)

Ucommune International Ltd (NASDAQ:UK) has received a notice from Nasdaq regarding its failure to maintain the minimum bid price of $1.00 per share for its Class A ordinary shares according to Nasdaq. The company's stock currently trades at $0.79, despite a 14.3% increase in the past week. Nasdaq has given the company until July 7, 2026, to regain compliance as reported.

The firm stated it will take all necessary steps to meet Nasdaq's requirements and has emphasized that the notice does not affect its ongoing business operations according to company statements. Ucommune also announced plans to hold an extraordinary general meeting on February 9, 2026, where it will seek shareholder approval for changes to its capital structure as announced.

Separately, a new report has revealed that two UK-registered cryptocurrency exchanges, Zedcex and Zedxion, have been used to move over $1 billion in funds linked to Iran's Islamic Revolutionary Guard Corps (IRGC) according to TRMLabs. These transactions, primarily conducted in USDT stablecoin on the TRON network, accounted for about 56% of the exchanges' total volume as reported.

Why Did This Happen?

Zedcex and Zedxion, both based in the UK, have been operating as a single exchange despite being registered as separate entities as detailed. Their corporate filings show minimal director involvement and use of virtual office addresses, suggesting a lack of transparency according to analysis.

A key figure in this network is Babak Morteza Zanjani, a former sanctioned financier known for laundering oil revenues on behalf of the IRGC as reported. His connection to the corporate trail behind Zedcex suggests a continuation of a well-established financial network operating under sanctions according to TRMLabs.

The report also notes that the IRGC has historically used front companies and sanctioned individuals to bypass Western financial restrictions as documented. This new development shows how the group has adapted its methods to include cryptocurrency as a tool for sanctions evasion according to analysis.

How Did Markets React?

While Zedcex and Zedxion are not publicly traded, the exposure of their role in facilitating IRGC transactions may raise concerns about the use of crypto as a sanctions evasion tool according to the report. TRON, the blockchain network involved in most of these transactions, has stated it has taken steps to curb suspicious activity as stated.

The report highlights the growing sophistication of sanctions evasion through digital assets, with on-chain analysis revealing direct transfers to an OFAC-designated Houthi financier according to TRMLabs. This underscores the difficulty regulators face in monitoring and preventing such activity as noted.

What Are Analysts Watching Next?

The report raises questions about the regulatory oversight of UK-based crypto exchanges and their compliance with anti-money laundering (AML) rules according to analysis. Despite Zedcex and Zedxion claiming to follow AML procedures, including ID checks and user bans for certain jurisdictions, the data shows they were still used to facilitate IRGC activity as revealed.

Analysts are also watching how policymakers will respond to the increasing use of digital assets for sanctions evasion. The report suggests that future enforcement efforts may need to shift from tracking individual transactions to identifying and disrupting the infrastructure itself according to TRMLabs.

The broader implication for investors is the potential risk of exposure to crypto platforms that may be unknowingly linked to sanctioned entities as highlighted. This highlights the importance of due diligence and regulatory scrutiny in the evolving crypto landscape according to analysis.