The US Treasury expands sanctions on the Babak Zanjani crypto network, naming ZEDX DMCC, ZedPay, and BZ Diamond as latest targets.
The US Treasury’s Office of Foreign Assets Control widened its sanctions net on July 24. The action targets businessman Babak Zanjani and his Dot One commercial network.
Treasury had previously sanctioned crypto exchanges Zedcex and Zedxion.
This time the list stretches into gold production, payments, and transportation. Blockchain intelligence firm TRM Labs had already flagged several of these entities in past research.
New Entities Tied to Zanjani’s UAE Operations
ZEDX DMCC tops the newly designated list.
The Dubai-based firm reflects the network’s shift toward the UAE over time. TRM Labs found that operations moved away from short-lived UK companies.
Dubai increasingly served as the commercial anchor for the group. UAE entities offered steadier infrastructure than the UK firms that came before them.
ZedPay also made the list as the network’s payment platform. TRM Labs had linked ZedPay to the exchange infrastructure well before the sanctions.
Corporate filings and branding tied ZedPay closely to Zedxion and related firms. Payment processing appears to have been a core piece of the ecosystem, not a side venture.
BZ Diamond DMCC rounds out the newly named UAE businesses. The precious metals firm connects to Bahareh Zanjani through public records.
Technical infrastructure behind the company traces back to figures seen elsewhere in the network. Its inclusion shows Treasury is willing to sanction firms far outside crypto when they support the same ecosystem.
Today Treasury’s OFAC expanded sanctions on Babak Zanjani’s network, targeting the commercial infrastructure behind sanctions evasion.
Several newly designated entities, including ZEDX DMCC, ZedPay, and BZ Diamond, were identified in TRM Labs’ earlier investigation.
Full… pic.twitter.com/CVap1AVG2t
— TRM Labs (@trmlabs) July 24, 2026
Treasury Also Sanctions Network Personnel
Mehdi Rezazadeh, ZedPay’s chief executive, was individually sanctioned alongside the companies. TRM Labs had already identified him as a senior figure in the Zedxion ecosystem.
Reports show Rezazadeh took part in forums on mining investment between Africa, Russia, China, and Iran. UK corporate records also connect him to earlier entities linked to the network.
His designation signals a shift in enforcement strategy.
Treasury is now targeting the people running these companies, not just the businesses themselves. TRM Labs’ research described a pattern of shared leadership across the network.
Directors and executives resurfaced repeatedly across crypto, payment, and commercial entities over several years.
Read also: EU Targets Russian Crypto Platforms in New Sanctions Package
A Wider Web Beyond Crypto Exchanges
TRM Labs’ research documented how the network cycled through corporate structures. UK companies frequently went dormant or changed leadership, only for new entities to appear.
Branding and digital infrastructure often stayed consistent through these transitions. Domain registrations and technical administrators recurred across multiple company changes, TRM Labs noted.
The broader network spans aviation, rail transport, commodity trading, travel services, and precious metals. Each business looked independent on paper.
Together, TRM Labs said, they formed a diversified system that spread risk across sectors and jurisdictions. That structure let operations continue even as individual firms faced scrutiny or dissolution.
TRM Labs said the case shows why investigations need to look past wallets and exchanges. Compliance teams should combine blockchain analysis with corporate and domain research, the firm said.
Networks like Zanjani’s rely on payment providers, logistics firms, and trusted personnel to function at scale. Treasury’s latest action reflects that wider understanding of how sanctions evasion operates today.
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