Revealing Hidden Connections in Cryptocurrency Transactions
Cryptocurrency and blockchain technologies have revolutionized financial systems. However, concerns about transparency and misuse continue to dominate discussions. Recently, two cryptocurrency exchanges from the United Kingdom, Zedcex and Zedxion, came under scrutiny for processing over $1 billion in stablecoin transactions allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) between 2023 and 2025.
The Rise and Fall of IRGC-linked Crypto Activity
According to TRM Labs, these exchanges handled IRGC-related transactions that represented 56% of their total trade volume. The flow of transactions spiked dramatically in 2024, making up 87% of the total, before declining to 48% in 2025. The exchanges processed most transactions using USDT (Tether) on the TRON blockchain, showcasing how dominant stablecoins have become within illicit financial ecosystems.
How Corporations Mask Operations
Zedcex Exchange Ltd and Zedxion Exchange Ltd were incorporated as UK-based entities that gave off the appearance of legitimacy. However, closer analysis revealed shared virtual office addresses and overlaps in directorship, painting a picture of coordinated activities.
One key figure found in this web was Babak Zanjani, a financier who had previously been sanctioned by the US and EU for money laundering. His links to DotOne Holding Group further revealed his ongoing involvement in cryptocurrency and logistics sectors, even after facing legal issues in Iran. This demonstrates how sanctioned individuals often use such corporate entities and technologies to navigate financial blacklists.
Platforms Enabling Illicit Transfers
Zedxion prioritized integrating with Zedpay, a Turkey-based payment processor that extended crypto-to-fiat capabilities. Turkish regulators have since suspended some related operations due to anti-money laundering issues, showing the growing vigilance against such misuse. The exchanges transferred over $10 million directly to a US-sanctioned Houthi financier, Sa’id al-Jamal, in 2024 without using mixers or intermediary accounts.
The Role of Blockchains in Exposing Fraud
With blockchain technologies providing unparalleled transaction visibility, TRM Labs connected several wallet addresses directly to IRGC-linked financial institutions. Blockchains can simultaneously facilitate transparency and misuse when left unchecked. Tools like compliance-based analytics are critical for law enforcement and governments to address financial fraud on decentralized platforms.
Make Secure Decisions
If you’re considering cryptocurrency investments or transactions, staying secure is vital. Always use reputable platforms such as Coinbase or Binance for greater transparency and user protection. Additionally, resources like Ledger Nano X (a hardware wallet found here) are essential for protecting your holdings offline.
Conclusion
As cryptocurrencies become a significant part of financial ecosystems worldwide, vigilance is critical. This investigation into Zedcex and Zedxion highlights the pressing need for enhanced regulatory frameworks to deter illegal transactions while enabling secure and decentralized financial transactions.
