A financial network allegedly connected to Iranian businessman Babak Zanjani processed approximately $850 million in cryptocurrency transactions through Binance, including at least $67 million transferred to wallets linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to an investigative report by The Wall Street Journal.
Washington, USA: An investigation by The Wall Street Journal, citing internal documents from cryptocurrency exchange Binance, has uncovered details of an extensive financial network allegedly associated with Iranian financier Babak Zanjani.
According to the report, the network operated through 21 business accounts and shell companies based primarily in the United Arab Emirates and, more recently, Turkey. These entities reportedly facilitated hundreds of millions of dollars in cryptocurrency transactions, raising concerns about potential sanctions evasion and financial flows connected to Iran.
$67 Million Allegedly Transferred to IRGC-Linked Wallets
Documents reviewed by The Wall Street Journal reportedly identified at least $67 million transferred directly from two accounts associated with the Zanjani-linked network to cryptocurrency wallets attributed to Iran’s Islamic Revolutionary Guard Corps.
The investigation further indicated that the broader network processed approximately $850 million in cryptocurrency transactions through Binance.
A substantial portion of these transactions reportedly passed through an institutional account belonging to a cryptocurrency platform identified as ZSex.
The findings highlight concerns surrounding the potential misuse of digital asset platforms to move funds across international borders while bypassing traditional financial monitoring systems.
Binance Documents Reveal Details of Financial Network
The newspaper’s investigation was reportedly based on an 80-page internal Binance document prepared in April in response to a formal information request from the United Arab Emirates’ Financial Intelligence Unit (FIU).
According to the report, the document outlined the structure of the financial network, its associated business accounts, and cryptocurrency transactions allegedly connected to efforts to circumvent international financial restrictions.
The records also reportedly provided insight into how companies operating across multiple jurisdictions could be used to facilitate cryptocurrency transfers involving entities subject to US sanctions.
The allegations underscore the challenges faced by financial regulators and cryptocurrency exchanges in identifying potentially illicit transactions and enforcing international sanctions.
US Treasury Targets Iranian Cryptocurrency Network
In a related development, the US Department of the Treasury announced additional sanctions targeting an Iranian cryptocurrency platform identified as BitBank and entities allegedly associated with its operations.
According to the Treasury statement described in the report, the measures targeted a financial network suspected of facilitating sanctions evasion and cryptocurrency transactions benefiting Iran’s Revolutionary Guard.
The sanctions form part of the Trump administration’s broader campaign to increase economic pressure on Tehran and restrict financial channels allegedly used to support sanctioned Iranian organisations.
US authorities have increasingly focused on digital assets as part of their efforts to identify and disrupt financial networks suspected of helping sanctioned entities access international markets.
BitBank and Associated Companies Face Sanctions
The Treasury’s Office of Foreign Assets Control (OFAC) reportedly designated several individuals and companies associated with the alleged Iranian financial network.
Among the entities identified was BitBank, a digital asset platform described as being controlled by Babak Zanjani.
The measures also reportedly targeted Bishtar Simorgh, a software development company associated with BitBank and identified as a subsidiary of the Dot One group, which was already subject to US sanctions.
According to the reported allegations, these entities formed part of a broader financial infrastructure used to facilitate cryptocurrency transactions and potentially evade restrictions imposed on Iran.
Cryptocurrency Transactions Draw Greater Regulatory Scrutiny
The reported findings come amid growing international scrutiny of cryptocurrency platforms and their potential exposure to sanctions-related financial activity.
Digital assets allow funds to move between wallets and jurisdictions without relying on conventional banking channels. However, blockchain transactions can also create traceable records that investigators use to identify suspicious financial activity.
The allegations involving Zanjani’s network highlight the importance of transaction monitoring, customer verification, and cooperation between cryptocurrency exchanges and financial intelligence authorities.
The investigation also draws attention to the UAE’s role in international financial oversight, particularly as regulators seek to strengthen safeguards against money laundering, terrorist financing, and sanctions evasion.
The reported transactions and financial connections remain allegations attributed to The Wall Street Journal investigation and the referenced regulatory documents. Their inclusion does not independently establish criminal wrongdoing by every individual or entity named.
The developments illustrate the continuing challenges facing cryptocurrency exchanges and financial regulators as governments seek to prevent digital asset infrastructure from being used to circumvent international sanctions.
