Iran’s Islamic Revolutionary Guard Corps is alleged to have transferred around $1bn worth of cryptocurrency through British-registered exchanges over the past two years, raising fresh concerns about sanctions enforcement and regulation in the UK’s digital assets sector.
According to blockchain analysts, the Islamic Revolutionary Guard Corps is believed to have channelled the funds via two UK-registered cryptocurrency platforms, Zedcex and Zedxion.
The transactions were reportedly carried out using the stablecoin USDT on the TRON blockchain. Experts say the choice of stablecoins and high-speed networks may have helped the transfers avoid detection.
Blockchain specialists argue the case exposes weaknesses in oversight of cryptocurrency platforms, particularly those operating in jurisdictions such as the United Kingdom. Despite being registered in Britain, the exchanges are alleged to have failed to block or flag transactions linked to a heavily sanctioned military organisation.
The findings have intensified scrutiny of regulatory compliance in the cryptocurrency industry, with analysts warning that poorly regulated platforms can be exploited by state actors attempting to bypass international sanctions.
The IRGC is already subject to extensive international restrictions over its military activities in the Middle East. Analysts say the alleged use of UK-linked exchanges to move such a large volume of digital assets underscores how government agencies can exploit gaps in crypto regulation.
Regulators and blockchain monitoring firms worldwide are now closely watching the case, which experts say demonstrates how even transfers worth as much as $1bn can pass largely unnoticed through digital financial systems.
The revelations are likely to add pressure on UK authorities to tighten controls on crypto exchanges and strengthen safeguards designed to prevent sanctioned entities from accessing global financial networks.
