The US Treasury Department announced sanctions on Friday against nine firms and four individuals linked to Iranian financier Babak Zanjani, targeting his "Dot One" business network for allegedly evading existing sanctions. The action aims to disrupt financial channels supporting the Iranian regime, with Treasury Secretary Scott Bessent emphasizing continued pressure on Tehran's economic access. The sanctions specifically target entities involved in cryptocurrency transactions and precious metals trading across multiple jurisdictions.

Crypto Exchanges Designated as Terror Assets

Two UK-registered cryptocurrency exchanges, Zedcex and Zedxion, were named in the sanctions order for allegedly processing over $94 million in funds tied to the Islamic Revolutionary Guard Corps (IRGC). The Treasury Department designated these platforms as "terror assets," citing their role in facilitating illicit financial flows. Dubai-based BZ Diamond FZCO, operated by Zanjani's sister Bahareh Morteza Zanjani and his significant other, reportedly supported these exchanges through token and non-fungible token (NFT) promotion activities.

The targeted companies operate across Iran, Turkey, and the United Arab Emirates. The network includes Dot One Value, where Zanjani serves as CEO, and Dot One Gold Company, a producer of gold bars. These entities are accused of creating complex financial structures to obscure the origin and destination of sanctioned funds.

Broader Context and Political Developments

Earlier reports had linked Binance to a Zanjani-associated network allegedly funding Iran's military operations, flagging roughly $260 million in transactions from 2024-2025. Binance publicly rejected these allegations, calling the report's methodology "damagingly flawed." The current sanctions represent a direct escalation in efforts to isolate Iranian financial actors from global markets.

Treasury Secretary Scott Bessent noted that the Iranian rial has reached record lows amid soaring inflation, stating, "Treasury will continue cutting off economic access for corrupt Iranian regime elites, along with their financiers and facilitators." Zanjani, who was previously commuted from a death sentence, denies the allegations, characterizing them as a "fake report" according to the Wall Street Journal.

The sanctions announcement follows Senate Majority Leader John Thune's plan to attach additional Iran penalties to a Russia sanctions bill before Congress's August recess. This legislative move signals sustained bipartisan support for tightening financial restrictions on Iran.

What the Numbers Show

The $94 million in flagged transactions processed by Zedcex and Zedxion represents a significant volume of illicit financial activity tied to the IRGC. When combined with the previously reported $260 million linked to Binance, the total alleged exposure exceeds $354 million in recent years. This concentration of high-value transactions through specific crypto platforms highlights the growing reliance on digital assets for sanctions evasion, presenting new challenges for regulatory enforcement.