A US-sanctioned Iranian businessman known for his skill at circumventing international sanctions is reportedly involved in a cryptocurrency operation to help finance Iran’s military and evade sanctions.
Babak Zanjani is believed to be involved in financial affairs for the Islamic Revolutionary Guards Corps (IRGC). So far, they have executed approximately $850 million in cryptocurrency trades on Binance using a single trading account over the past two years.
The account reportedly had been active for at least 15 months.
Babak Zanjani involved in major cryptocurrency transactions and supports Revolutionary Guards
According to internal compliance documents obtained from Binance, in addition to blockchain analysis and information from law enforcement authorities, these transactions included both deposits and withdrawals.
When investigators assessed the account’s potential role in the country’s terrorist financing operations, they found that nearly half of these transactions, worth about $425 million, were for the country’s military. Zanjani’s network included accounts owned by his sister, girlfriend and company director, and was accessed through shared devices, the report said.
The transaction is related to Zanjani’s cryptocurrency business Zedsex, which transferred proceeds from the sale of Iranian crude oil to a Dubai subsidiary’s Binance account through a Turkish bank. The money was then transferred to other exchanges such as Nobitex in Iran and exchanged for rials.
Despite several red flags raised by internal investigators, Binance reportedly proceeded to complete these transactions. These included Iranian involvement and connections and access from Tehran. THis main account is still alive.
Binance is under investigation for processing Iranian financial transactions despite promised reforms. Furthermore, as an example of an exchange that was not covered by the exchange, the Central Bank of Iran transferred $107 million via a Binance account in 2025, and direct transactions with Binance totaled $260 million from 2024 to 2025.
How did Babak Zanjani end up on the US sanctions radar?
Mr. Zanjani initially rose to fame as a sanctions buster who made his fortune through oil trading. In 2013, the United States imposed sanctions on Mr. Zanjani for using a Malaysian bank to transfer billions of dollars on behalf of the Iranian regime.
Sanctions were suspended in 2016 following the nuclear deal, but were reinstated in 2026 following Zedex’s role in facilitating the transfer of funds to the Revolutionary Guards through cryptocurrency exchanges, among other actions related to its operations.
Zanjani was tried in Iran in 2016 for embezzlement and sentenced to death, but that sentence was overturned in 2024. He continues to fight a legal battle with the Central Bank of Iran over unpaid loans. In December, he posted his wallet address on social media, inadvertently exposing details of a broad sanctions evasion framework based on Nobitex.
Zanjani describes himself as an “anti-sanctions operator” and “economic Basij soldier” and has publicly supported blockchain technology to evade Western financial institutions.
His spokesperson denies accusations of money laundering and sanctions evasion through virtual currency exchanges.
Iran strengthens cryptocurrency strategy amid rising tensions
Iran holds large amounts of crypto assets, estimated at $7.7 billion, to cope with sanctions. The IRGC has raised nearly $3 billion in cryptocurrencies through digital channels. Among other things, this includes the use of cryptocurrencies in payments for oil trade, including payments for tanker shipments through the Strait of Hormuz.
According to reports Cryptopolitan, Iran has launched a new cryptocurrency-backed marine insurance scheme called Hormuz Safe, aimed at protecting ships transiting the strategically important Strait of Hormuz.
Launched in mid-May 2026, this Bitcoin-backed initiative aims to serve Iranian shipping companies and shippers moving through this vital energy artery.
At present, Ministry of Justice Approximately $500 million worth of cryptocurrencies linked to Iran were seized. A warning has been issued regarding the IRGC’s involvement in cryptocurrencies. In particular, the USDZ stablecoin created by Iran is mentioned.
