The U.S. Department of Treasury is investigating whether Iran is using crypto exchanges and digital asset infrastructure, instead of just personal wallets, to evade Western sanctions. This move indicates that enforcement focus is shifting from individual wallet addresses to intermediary platforms that can provide repeat access to financial services for sanctioned entities.
According to blockchain analysis firm TRM Labs, an exchange linked to Iran called Zedcex processed approximately $1 billion in transactions related to the Islamic Revolutionary Guard Corps (IRGC). TRM states that transactions involving the IRGC account for about 56% of the total trading volume on this platform and peaked at 87% in 2024. This reflects a trend where sanctioned entities are turning to “service infrastructure” such as exchanges, stablecoin corridors, and liquidity centers instead of merely moving funds across multiple wallets.
U.S. officials are reportedly particularly concerned that evasion activities are moving beyond opportunistic crypto use to rely on organized digital financial infrastructure capable of sustaining large-scale operations. According to TRM Labs and Chainalysis, the total crypto transaction volume related to Iran has increased to approximately $8–10 billion annually. A significant portion of this is believed to be connected to the IRGC, although most of the funds still come from ordinary citizens seeking to preserve assets, access USD, and maintain connections to the global financial system amid a weakening domestic currency.
Last week, the U.S. Department of Treasury imposed its first sanctions on crypto exchanges accused of operating within Iran’s financial sector. The Office of Foreign Assets Control (OFAC) blacklisted Zedcex and Zedxion — two exchanges registered in the UK — alleging they facilitated transactions for the IRGC, which the U.S. and European Union designate as a terrorist organization.
Experts argue that targeting individual wallets is increasingly ineffective because crypto wallets are easy to create and relatively anonymous. Instead, a more effective approach is to focus on liquidity points and service providers that regularly support fund flows, thereby disrupting the ability of sanctioned networks to access the financial system.
However, analysts also note that most global crypto activity remains legitimate. Nevertheless, as blockchain increasingly serves as infrastructure for payments and settlements, sanctioned countries and organizations are likely to continue exploiting specialized layers built on these networks.
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