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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Algorand Cuts Workforce as SEC Labels ALGO a Commodity
The Algorand Foundation has reduced its workforce by 25% amid market uncertainty, even as the SEC clarified ALGO’s status as a digital commodity. The move reflects a strategic reset rather than a retreat from long-term growth.
Layoffs Hit Algorand as Market Pressures Collide With Regulatory
Coinpedia2h ago
Los Angeles Rideshare Driver Arrested for Allegedly Fraudulently Obtaining $2 Million COVID Loan to Purchase Cryptocurrency
Los Angeles rideshare driver Bruce Choi has been arrested on suspicion of defrauding $2 million in pandemic relief loans and using the funds to purchase cryptocurrency. Choi fabricated companies to apply for loans, and prosecutors have charged him with wire fraud and money laundering. If convicted, he faces serious penalties.
GateNews2h ago
Prediction Market Platform Kalshi's Monthly Revenue Exceeds $110 Million, Faces Arizona Criminal Gambling Charges
Kalshi Faces Arizona Criminal Gambling Charges, Monthly Revenue Exceeds $110 Million. Despite the company arguing that its contracts are federally regulated, the state contends that these contracts resemble traditional gambling. Legal battles are unfolding in multiple states, regulatory uncertainty is intensifying, while the CFTC is considering new regulations.
GateNews3h ago
Paraguay Holds Anti-Crime Seminar Focusing on Cryptocurrency Applications in Organized Crime and Regulatory Responses
On March 19, Paraguay's National Drug Secretariat held a workshop with the American Bar Association to discuss technical capabilities to combat crimes utilizing Bitcoin and other cryptocurrencies, analyze the digitalization trends of transnational criminal networks, and disclose cases of Uruguayan drug traffickers conducting transactions through cryptocurrencies. Paraguay's Tax Administration has already required cryptocurrency trading platforms to report transaction information.
GateNews3h ago
Husband accuses wife of stealing over 2,000 bitcoins! Judge: The plaintiff has a very high chance of winning.
The UK High Court is hearing a Bitcoin theft case in which the plaintiff accuses his wife of stealing 2,323 bitcoins and covertly recording the seed phrase through surveillance equipment. The court found the evidence disadvantageous to the defendant, including recordings and seized devices. While some claims were dismissed, the plaintiff has a very high probability of success, and the court will maintain the asset freeze order.
区块客3h ago
UK Man Accuses Ex-Wife of Stealing 2323 BTC After Divorce, Worth Approximately $238 Million
Gate News reported that on March 19, a man accused his ex-wife of stealing over 2323 bitcoins from his wallet after their divorce and transferring them to a place he cannot access, with the assets involved valued at up to 180 million pounds (approximately 238 million US dollars). Plaintiff Ping Fai Yuen has filed a lawsuit against his ex-wife Fun Yung Li at the London court over this matter. According to London court ruling documents published on March 10, since the litigation was initiated, the bitcoins involved in the case have been valued at up to 180 million pounds.
GateNews4h ago
