UK Moves to Dissolve Zedxion Exchange Over Deceptive Crypto Filings

• UK regulators moved against Zedxion after deceptive filings surfaced at Companies House
• OCCRP found a fabricated director identity linked to the exchange with Babak Zanjani
• OFAC said Zedxion-linked wallets processed funds tied to the wider IRGC network

Britain’s company register has moved to dissolve Zedxion Exchange Ltd. after U.S. sanctions linked it to Iran’s Revolutionary Guards, and filings were deemed misleading, false, or deceptive. Companies House issued a notice stating that “the registrar is intending to take, or has taken, steps to strike off this company under section 1002A of the Companies Act 2006.”

The notice adds that the action relates to “information or a statement in an application for incorporation that is misleading, false, or deceptive,” with a compulsory strike-off process now underway. The dissolution process has begun, and a first gazette notice will be made public in ten days.

False Identity Exposed in Corporate Filings

The enforcement action follows findings by the Organized Crime and Corruption Reporting Project, which revealed that Zedxion’s listed director, Elizabeth Newman, did not exist. According to OCCRP, the identity appeared in official filings as a Dominican national, yet investigators traced it to a fabricated persona linked to Babak Zanjani.

The report stated that Newman served as a front for Zanjani, a sanctioned Iranian businessman with a history tied to oil fund embezzlement and financial networks. OCCRP also found that Zedxion used a stock photo model in a marketing video to represent Newman, raising further concerns about the company’s disclosures.

Neither Zedxion Exchange nor Zanjani responded to requests for comment before publication, including inquiries regarding the Companies House notice and identity concerns. Companies House records further show that “Babak Morteza,” whose details match Zanjani, served as a person with significant control between October 2021 and August 2022.

At that time, Zanjani faced a death sentence in Iran following a 2016 conviction for embezzlement of state oil funds, according to official case records. His sentence was commuted in 2024, and he was formally released last year, although prison records cited by OCCRP suggest he may have left custody as early as 2019.

Sanctions and Blockchain Evidence

In January, the U.S. Treasury’s Office of Foreign Assets Control sanctioned Zanjani, Zedxion Exchange Ltd., and Zedcex Exchange Ltd. over alleged financial links to the IRGC. OFAC stated that Zanjani provided “financial backing for major projects that support the Islamic Revolutionary Guards Corp (IRGC) and the Iranian regime more broadly.”

The agency also said that “multiple Zedcex and Zedxion-attributed addresses have processed funds for wallets linked to the IRGC,” indicating direct blockchain activity tied to sanctioned networks. A separate report by TRM Labs found that both exchanges appeared to play an expanding role in IRGC financing despite filing dormant accounts in the United Kingdom.

TRM Labs described the IRGC as a military organization with vast economic influence, operating as a multi-billion-dollar entity aligned with Iran’s ruling system. Meanwhile, analytics firm Chainalysis reported that at least $154 billion in crypto flows reached IRGC-linked addresses in the past year, marking a 162% increase. 

At the same time, U.S. regulators continue to probe Binance over more than $1 billion in transactions that may involve sanctioned entities, although the company denies the allegations.

Related: South Korea’s Hana Group and the UK’s Standard Chartered Partner in Digital Finance Push

Stronger UK Powers and Global Enforcement Gaps

The UK’s action follows expanded powers under the Economic Crime and Corporate Transparency Act 2023, which requires identity verification for company directors and controllers. Since March 2024, Companies House can question and remove suspicious information without waiting for criminal proceedings, enabling faster enforcement actions against questionable filings.

These powers allowed regulators to act directly on Zedxion’s filings after identifying misleading information tied to its incorporation and ownership structure. At the same time, authorities aim to close gaps that allow entities to exploit corporate registration systems for financial misconduct and sanctions evasion.

Digital asset platforms establish operations in multiple countries, which creates difficulties for regulators who need to enforce regulations in different legal areas that have their own specific rules.

How can regulators ensure consistent oversight when crypto firms span multiple legal systems and exploit fragmented compliance frameworks? The UK crypto sector experiences increased regulation as authorities use advanced methods to identify and shut down businesses that operate with illegal financial activities.