Treasury Targets $94 Billion Sanctions-Evasion Network Tied to Gold-Backed Tokens

The US Treasury has taken action against Babak Zanjani's sanctions-evasion network, designating four individuals and nine entities. The network is connected to Iranian oil money, gold-backed tokens, and crypto exchanges that have processed over $94 billion in transactions since 2022.

Zedcex and Zedxion are the two digital asset exchanges at the center of this network, which has also been linked to the Tala Token, a gold-backed digital asset. The Treasury specifically called out the Tala Token, highlighting how Zanjani's network has woven together physical commodities and digital assets into a single sanctions-evasion architecture.

Zanjani is not a new name in sanctions enforcement circles, having been first designated by OFAC in 2013 for facilitating billions of dollars in Iranian oil revenue transfers. His sanctions were temporarily lifted in 2016 but were subsequently reimposed as U.S. policy towards Iran shifted.