The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on Iranian officials and entities accused of violent repression and corruption. Among those sanctioned is Eskandar Momeni Kalagari, Iran’s Minister of the Interior, who oversees the Law Enforcement Forces of the Islamic Republic of Iran (LEF). The LEF is identified as a key group responsible for the deaths of thousands of peaceful protestors.
Babak Morteza Zanjani, an Iranian investor previously convicted for embezzling billions from Iran’s National Oil Company, was also sanctioned. After his prison sentence was commuted in 2024, Zanjani reportedly provided financial backing for large projects supporting both the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC).
For the first time, OFAC has designated two digital asset exchanges—Zedcex Exchange, Ltd. and Zedxion Exchange, Ltd.—for operating in Iran’s financial sector. These UK-registered exchanges have processed significant funds linked to IRGC-associated parties since their establishment.
Secretary of the Treasury Scott Bessent stated: “Rather than build a prosperous Iran, the regime has chosen to squander what remains of the nation’s oil revenues on nuclear weapons development, missiles, and terrorist proxies around the world. President Trump stands with the people of Iran and has ordered Treasury to sanction members of the regime. Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people. This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations. Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian families to banks and financial institutions around the world. Rest assured, Treasury will act.”
These actions are authorized under Executive Orders 13553 (sanctions related to human rights abuses), 13224 (counterterrorism), and 13902 (targeting Iran’s financial sectors). In 2025 alone, OFAC sanctioned more than 875 persons, vessels, and aircraft as part of ongoing efforts against shadow banking and sanctions evasion.
OFAC also targeted several senior security officials alleged to be involved in violent crackdowns on protests across various provinces in Iran. These include Majid Khademi (IRGC Intelligence Organization), Ghorban Mohammad Valizadeh (IRGC Seyyad al-Shohada Corps in Tehran province), Hossein Zare Kamali (IRGC commander in Hamadan province), Hamid Damghani (IRGC commander in Gilan province), and Mehdi Hajian (LEF commander in Kermanshah province).
According to OFAC findings, these individuals are connected either directly or indirectly with actions resulting in mass killings or other serious abuses during protests.
The United States reiterated its support for internet freedom in Iran by highlighting General License D-2 under 31 CFR §560.540. This license allows certain services that help Iranians access online information despite ongoing government-imposed internet blackouts.
As a result of these measures, all property or interests belonging to designated individuals or entities within U.S. jurisdiction are blocked. U.S. persons are generally prohibited from engaging in transactions involving these blocked parties unless specifically authorized by OFAC.
Violations can lead to civil or criminal penalties for both U.S. and foreign individuals or organizations involved with designated parties.
OFAC emphasized that its sanctions aim not just at punishment but at encouraging positive changes in behavior among targeted parties.
