IRGC's $1 billion cryptocurrency transaction to evade international sanctions through the UK embassy

According to the latest report from TRM Labs, a professional blockchain transaction analysis company, the Iranian Islamic Revolutionary Guard Corps (IRGC) has been circumventing international sanctions through a UK loophole trading strategy that utilizes cryptocurrency exchanges registered in the UK. According to a report by The Block on January 11, citing PANews, these transactions are estimated to total approximately $1 billion.

The Scale of UK Loophole Trading Revealed by TRM Labs Analysis

TRM Labs’ analysis shows that since 2023, the IRGC has been systematically engaging in sanctions evasion activities through exchanges registered in the UK, such as Zedcex and Zedxion. From 2023 to 2025, IRGC-related transactions account for 56% of the total trading volume on these exchanges, which is considered a large-scale fund transfer exploiting gaps in the UK financial oversight system.

The fact that over half of the total trading volume processed by these exchanges during this period involves organizations subject to sanctions suggests that these platforms may lack proper anti-money laundering (AML) systems and customer verification (KYC) procedures. The characteristics of UK loophole trading indicate that these exchanges operate in regulatory blind spots.

Stablecoin-Based Sanctions Evasion Mechanism

Most IRGC-related transactions were conducted using USDT (Tether) stablecoins on the Tron blockchain network. This choice is interpreted as a deliberate strategy to enhance transaction anonymity and bypass existing international remittance networks. The structure of UK loophole trading, which exploits the fast transaction speed and lack of transparency of stablecoins, reveals how vulnerable current cryptocurrency regulatory frameworks are.

The high transaction volume on the Tron network and its relatively low regulatory enforcement have made it a preferred platform for sanctions-targeted organizations like the IRGC. Fund transfers through these platforms have penetrated existing international financial monitoring systems. Transactions mediated by stablecoins like USDT increase tracking difficulty while providing nominal value stability, thereby reducing risk.

Challenges for International Sanctions Regulatory Systems

The TRM Labs analysis clearly indicates that gaps still exist in global regulation of the cryptocurrency industry. The insufficient oversight even in advanced countries like the UK highlights a serious issue faced by the international community. In the future, regulatory authorities and exchange operators in various countries need to establish more robust monitoring systems to detect sanctions evasion methods such as UK loophole trading.