Iran Revolutionary Guard's UK operation: $1 billion cryptocurrency transaction uncovered

It has been revealed through the latest investigation by security firm TRM Labs that Iranian authorities have utilized cryptocurrency exchanges registered in the UK to evade international sanctions. The findings were published in January by blockchain media outlet The Block, indicating that approximately $1 billion worth of transactions were involved in this UK circumvention process.

Large-scale Fund Transfers via UK Exchanges

According to TRM Labs’ analysis, Iran’s Islamic Revolutionary Guard Corps(IRGC) has been active since 2023 around two exchanges registered in the UK, Zedcex(Zedcex) and Zedxion(Zedxion). Notably, 56% of the transactions on these exchanges from 2023 to early 2025 are believed to have been conducted by entities related to the IRGC. This suggests that these two exchanges have effectively served as major channels for bypassing international sanctions through the UK.

The transactions primarily occurred via the Tron(Tron) blockchain network using the stablecoin USDT(USDT). The use of stablecoins for transactions is favored among sanctioned entities because it maintains asset stability while avoiding existing financial sanctions monitoring systems.

Sanction Evasion Mechanisms and Weaknesses in Exchange Oversight

This incident suggests that London-based exchanges may have lacked sufficient anti-money laundering(AML) and know-your-customer(KYC) procedures. It appears to be a sanction evasion operation exploiting gaps in the UK financial regulatory oversight. As traditional financial systems become more difficult to access, Iran seems to have started using the cryptocurrency market as a new international trading channel.

Without ongoing monitoring and analysis by blockchain security firms like TRM Labs, it would have been difficult to identify the scale of this sanction evasion. Strengthening regulations on cryptocurrency exchanges worldwide, including in the UK, and enhancing international surveillance cooperation are recognized as important future tasks.