Iran’s Islamic Revolutionary Guard Corps (IRGC) reportedly moved about $1 billion in cryptocurrency through two UK-registered exchanges over the past two years, according to a report by blockchain intelligence firm TRM Labs.
Summary
- Investigators at TRM Labs, a blockchain intelligence firm, found that the IRGC used Tether (USDT) on the TRON blockchain to route funds.
- Exchanges called Zedcex and Zedxion collectively processed a large majority of the transactions.
- The flow of funds helped the IRGC sidestep traditional banking restrictions, directing money to affiliated groups and other sanctioned entities.
According to The Washington Post, the heavily sanctioned military force moved roughly $1 billion in cryptocurrency through two United Kingdom–registered exchanges over the past two years, highlighting crypto’s growing role in circumventing financial controls.
Experts say the case underscores how lightly regulated crypto platforms can be exploited by state actors seeking to evade sanctions.
Despite operating under UK registration, the exchanges apparently failed to block transactions linked to a globally sanctioned military organization, raising questions about compliance and oversight in the crypto sector.
The IRGC is already a focal point of international scrutiny for its regional military actions.
Now, blockchain investigators and regulators alike are watching closely, as the case demonstrates that even $1 billion can move virtually unnoticed on digital rails — and that cryptocurrency’s promise of financial freedom can easily become a tool for geopolitical maneuvering.