US Sanctions 13 Individuals and Firms in Network of Iranian Financier Babak Zanjani

The United States on Friday sanctioned nine companies and four individuals linked to the business network of convicted Iranian financier Babak Zanjani, accusing them of helping Iran evade international sanctions. The U.S. Department of the Treasury stated the network was used to launder revenue and covertly move funds for the Iranian government.

The Sanctioned Network

The Treasury's Office of Foreign Assets Control (OFAC) targeted entities in Iran, Turkey, and the United Arab Emirates. The designations are aimed at dismantling Zanjani's conglomerate, known as "Dot One," and its associated operations which span financial services, digital asset trading, and gold production.

According to the Treasury, the network helped finance Iran's destabilizing activities, including support for the Islamic Revolutionary Guard Corps (IRGC). Key entities designated include:

• The Iran-based Dot One Value Creation Group and its subsidiaries in rail, gold, and airline services.
• Istanbul-based Zedpay Finansal Sistem Ve Hizmetleri Anonim Sirketi and its chairperson, Mehdi Rezazadeh, for providing payment services to a previously sanctioned Zanjani entity.
• Dubai-based firms Zedx DMCC and BZ Diamond FZCO, along with their respective managers.
• Zanjani's sister, Bahareh Morteza Zanjani, and his partner, Solmaz Bani, were also sanctioned for their roles in the network.

Background on Babak Zanjani

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Babak Zanjani, a billionaire, has long been identified by U.S. authorities as a key figure in Iran's sanctions-evasion efforts. He was sentenced to death in Iran in 2016 for embezzlement, though his sentence was commuted in 2024, after which he re-emerged as a backer of Iranian government economic projects, the Treasury said.

In January, the U.S. sanctioned Zanjani's two largest digital asset exchanges, Zedcex and Zedxion. The Treasury alleges that following his commuted sentence, Zanjani built a new network of digital asset companies used in part to launder money for the IRGC.

Broader Pressure Campaign

This action is part of a wider U.S. economic and military pressure campaign against Iran. State Department spokesman Tommy Pigott said the move "applies further pressure on the Iranian regime following its attacks on commercial vessels transiting the Strait of Hormuz and regional neighbors."

U.S. Treasury Secretary Scott Bessent noted that Iran was already paying a "steep economic price for its reckless behavior," citing the Iranian rial's plunge to record lows and inflation exceeding 60%. He affirmed that the Treasury would continue to cut off economic access for the Iranian government and its financiers.