New German investigation reveals how the IRGC leveraged shell companies and cryptocurrency platforms to move illicit oil revenues and finance regional instability
A new investigative report by the German outlet NTV has unveiled a sophisticated financial network operated by Iran’s regime, exposing how more than $1 billion was funneled through shell companies based in London to bypass international sanctions.
According to the report, published on Monday, the operation is closely tied to the Islamic Revolutionary Guard Corps (IRGC), which has allegedly used cryptocurrency exchanges—identified as Zedcex and Zedxion—to convert illicit oil revenues into digital assets. This mechanism allowed Tehran to circumvent sanctions and discreetly transfer funds across borders.
Experts from TRM Labs, a blockchain intelligence firm, analyzed transaction patterns and concluded that over 87 percent of the network’s activity is directly linked to the IRGC. Their findings highlight the scale and centralization of the operation within the regime’s military-financial apparatus.
Further investigation by the Organized Crime and Corruption Reporting Project (OCCRP) revealed that the listed CEO of these companies was entirely fictitious. The identity was fabricated to create what investigators described as a “veneer of Western legitimacy,” enabling the network to infiltrate and exploit the international financial system with reduced scrutiny.
The report also points to the involvement of Babak Zanjani, a notorious figure in Iran’s oil corruption scandals. Evidence suggests that Zanjani played a key role in designing and managing these platforms, even before his official release from prison, reinforcing long-standing concerns about systemic corruption and impunity within the regime.
Beyond financial misconduct, the investigation uncovers the geopolitical implications of this network. Millions of dollars in cryptocurrency were reportedly transferred to proxy groups, including the Houthi movement in Yemen. These transactions underscore Tehran’s direct role in financing militant groups and fueling instability across the Middle East.
Analysts note that the regime employed over-the-counter (OTC) trading methods to convert cryptocurrencies into cash or gold, effectively erasing transaction trails and complicating enforcement efforts. This level of sophistication demonstrates a deliberate strategy to evade detection and sustain illicit operations despite mounting international pressure.
Although the United States has imposed sanctions on individuals and entities linked to this network, including Zanjani, a significant portion of the assets remains beyond reach and continues to circulate globally. This persistence highlights the limitations of current enforcement mechanisms and signals that Iran’s covert financial operations remain active and adaptive.
The findings add to growing evidence that Tehran is not only evading sanctions but systematically weaponizing global financial tools to sustain its regime and expand its influence through proxy warfare.
