The US Treasury has sanctioned two cryptocurrency exchanges tied to Iran’s financial system, targeting digital asset platforms as part of its Iran sanctions program. Iranian officials and networks accused of human rights abuses and financial misconduct are also included in the sanctions. Eskandar Momeni Kalagari and Babak Morteza Zanjani are among those sanctioned for corruption and embezzlement.

US extends sanctions to UK crypto exchanges Zedcex and Zedxion, linking them to Zanjani and IRGC-related transactions. Zedcex alone processed over $94 billion since 2022. This marks the first OFAC designation of a digital asset exchange in Iran’s financial sector. Treasury Secretary Bessent accuses Tehran of diverting oil revenues to weapons programs instead of aiding its people.

Beyond crypto, OFAC sanctions senior IRGC commanders and security officials for human rights abuses. Live-fire attacks on protesters and forced burials without funerals are cited. The US continues to target networks using digital assets to evade restrictions and fund illicit activities. Iran’s actions raise concerns about the misuse of funds to support weapons programs.

Iran’s central bank accumulates over $500 million worth of Tether’s USDT during economic turmoil. The stablecoin is likely used to support the collapsing rial or facilitate international trade. Blockchain analytics firm Elliptic notes the bank’s use of USDT on local exchange Nobitex for market operations, reflecting traditional central bank practices.

Read more at Cointelegraph: US Treasury Sanctions Iran-Linked Crypto Exchanges for First Time