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Crypto Exchange Under Scrutiny for Military Ties
In an unsettling discovery, a blockchain analytics company revealed that nearly 90% of funds processed by a UK-based cryptocurrency exchange in 2024 had connections to Iran’s formidable military force.
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Unmasking a Billion-Dollar Operation with a Fabricated Identity
TRM Labs, known for its expertise in tracking cryptocurrency transactions, reported that Zedxion Exchange, along with its affiliate platform Zedcex, facilitated approximately $1 billion in funds linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). In 2024, around 87% of all transactions managed by these exchanges were tied to the IRGC. Although this percentage decreased to about 48% in 2025, the sheer volume of funds associated with the Iranian military entity remained significant. As a result, the UK government is now moving to shut down the exchange.
The UK’s Companies House, responsible for registering businesses, has initiated a compulsory strike-off against Zedxion Exchange Ltd. Authorities have accused the company of submitting false information, including appointing a non-existent director.
Deceptive Identity: Stock Photos and Fabricated Credentials
The fictional director was registered under the name Elizabeth Newman, purportedly a citizen of the Dominican Republic. An investigation by the Organized Crime and Corruption Reporting Project (OCCRP) suggested that the persona was entirely fabricated, with promotional videos featuring an image sourced from a stock photo.
Prior to Newman’s appearance in official documents, a man named Babak Morteza occupied the director’s position. His details matched those of Babak Zanjani, an Iranian billionaire previously sentenced to death for embezzling state oil funds. Although his sentence was reduced in 2024, Zanjani resumed his business activities. From October 2021 to August 2022, Morteza was listed as director and the person with significant control of Zedxion.
Zanjani is also reportedly at the helm of DotOne Holding Group, a diverse conglomerate with interests in cryptocurrency, foreign exchange, logistics, and telecommunications—industries historically used to circumvent international sanctions.
Global Economic Dynamics and Sanctions
The ongoing scrutiny by the UK follows the US Treasury Department’s Office of Foreign Assets Control (OFAC) sanctions imposed in January. Both Zedxion and Zedcex were named in these actions, with OFAC accusing Zanjani of financing projects that support the IRGC and the broader Iranian government.
Company records for the exchanges revealed dormant accounts, a stark contrast to the significant transaction volumes identified by blockchain experts. In 2023, the UK enacted the Economic Crime and Corporate Transparency Act, empowering Companies House to verify director identities and ensure businesses are established for legitimate purposes. The Zedxion case serves as a prominent example of these enhanced regulatory powers in action.
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