OFAC Designates Four Individuals, Nine Entities in Zanjani Sanctions Evasion Network
In brief
- OFAC designated four individuals and nine entities connected to Babak Zanjani's sanctions network on July 24.
- Crypto exchanges Zedcex and Zedxion processed over $94 billion in transactions since 2022 as part of the network.
- Zanjani was redesignated in January 2026 after pivoting to digital assets including Tala Token, a gold-backed token.
The Zanjani network
OFAC designated four individuals and nine entities tied to Babak Zanjani on July 24, marking an escalation in U.S. enforcement against Iran-linked financial operations. The designations target Zanjani's conglomerate, Dot One Value Creation Group, along with associated companies like DotOne Gold Company and Zedpay.
At the center sit two digital asset exchanges: Zedcex and Zedxion, which have processed over $94 billion in transactions since 2022. This volume underscores the scale of the operation. When OFAC designates entities, compliant exchanges and financial institutions are required to block associated assets and report them to authorities.
Zanjani's long history
Babak Zanjani is no stranger to U.S. sanctions. OFAC first designated him in 2013 for facilitating billions of dollars in Iranian oil revenue transfers. His sanctions were temporarily lifted in 2016 during JCPOA negotiations but were subsequently reimposed as U.S. policy towards Iran shifted.
An Iranian court sentenced him to death in 2016 for embezzlement, though that sentence was commuted in 2024. Zanjani was redesignated by OFAC in January 2026, marking a renewed focus on his pivot into digital assets.
Gold-backed tokens and crypto
The network's sophistication lies in its layering. The Tala Token, a gold-backed digital asset connected to DotOne Gold Company, provided another channel for value transfer. The January 2026 designation of Zedcex and Zedxion marked the first time OFAC had gone after digital asset exchanges specifically tied to IRGC activities.
This represents a shift in enforcement posture. Regulators are moving beyond targeting individual bad actors to dismantling infrastructure that enables sanctions evasion at scale. The $94 billion figure signals the depth of the problem and the urgency of the response.
