Treasury Sanctions Turkish Fintech Zedpay in Iranian Crypto Network Crackdown

The US Department of the Treasury on July 24, 2026, designated nine entities and four individuals tied to Iranian financier Babak Zanjani's sanctions evasion network, zeroing in on Istanbul-based fintech firm Zedpay as a critical gateway between traditional finance and covert digital asset exchanges.

The Office of Foreign Assets Control (OFAC) identified Zedpay Finansal Sistem Ve Hizmetleri Anonim Sirketi as providing fiat settlement and cross-border payment capabilities to Zedxion, one of two crypto exchanges backed by Zanjani that were themselves sanctioned in January 2026. The action marks the latest escalation in Washington's campaign to dismantle the commercial infrastructure enabling Iran to bypass international financial restrictions.

Targeting the Dot One Ecosystem

The sanctions sweep encompasses Zanjani's Dot One conglomerate, including Dot One Value Creation Group, DotOne Gold Company, DotOne Rail Company, DotOne Barter Company, DotOne Airlines Company, and DotOne Trip. Treasury officials described the network as a multifaceted evasion apparatus spanning fintech, commodities, and transportation sectors.

Zanjani, once among Iran's wealthiest businessmen, was first sanctioned in 2013 and sentenced to death in 2016 for embezzling billions in oil revenues. His sentence was commuted in 2024, and by 2025 he had re-emerged backing regime-linked projects through the Dot One structure and digital asset platforms Zedcex and Zedxion.

Strategy Shift: Choking Off Fiat Gateways

The designation of Zedpay reflects a tactical pivot in US sanctions enforcement. Rather than targeting crypto exchanges alone, Treasury is now pursuing the fiat-to-crypto on-ramps that allow sanctioned actors to convert digital assets into spendable currency within the traditional banking system.

"The Iranian regime continues to pay a steep economic price for its reckless behavior, with the rial plunging to another record low and inflation up massively," Treasury Secretary Scott Bessent said in a statement accompanying the announcement.

The network is accused of laundering revenue and moving funds covertly to support the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC). By designating entities across Turkey and the UAE, Treasury aims to isolate Zanjani's operations from both regional financial hubs.

Broader Implications

This action underscores Washington's growing focus on the ancillary services that enable sanctions evasion. Gold traders, rail operators, barter companies, and fintech processors now face heightened scrutiny as potential nodes in illicit finance networks.

For compliance teams at financial institutions, the Zedpay designation serves as a reminder that crypto-adjacent payment processors represent elevated risk, particularly when linked to previously sanctioned individuals or jurisdictions. The Dot One conglomerate's diversification across multiple sectors illustrates how evasion networks can embed themselves within legitimate-appearing commercial structures.

Treasury indicated that additional designations could follow as investigators map the full extent of Zanjani's reconstituted network.