Caught between the Iran war on one side and the Erdoğan government’s crackdown on the opposition CHP on the other, a highly intriguing development recently slipped under the radar. Iranian billionaire Babak Zanjani—whose name once dominated headlines in Turkey—has re-emerged and reportedly returned to work on behalf of Tehran.
The Turkish public largely failed to follow Zanjani’s extraordinary trial process, which was filled with startling revelations. For a long time, I assumed Iran had merely postponed his execution in the hope that he would return the money he allegedly stole.
As it turns out, while the world focused on the U.S.-Israeli campaign against Iran, Zanjani escaped execution, was released, and was reassigned for what Tehran calls an “economic jihad.”
Don’t dismiss this with, “Why should we care?” Babak Zanjani’s Turkish connections—and the unresolved files opened by Reza Zarrab—remain very much alive.
I’ll get into the details shortly, but the key question is this: if Zanjani is back in operation, could new “Zarrabs” now be active in Turkey? Who are they, and what exactly are they doing today?
The Network That Brought Erdoğan to His Knees
Years have passed since the massive December 17–25 corruption and bribery investigations. The Erdoğan government erased records, suppressed reports, and silenced those who raised the issue. That is why Babak Zanjani and his network deserve renewed attention.
Zanjani was the business partner of Reza Zarrab, the key figure in the Halkbank sanctions-evasion case. He was arrested in Iran in 2013, accused of embezzling $2.7 billion belonging to the Iranian state, and sentenced to death in 2016.
After years on death row, Zanjani was unexpectedly released last year. Now he is back in action. Under intense sanctions pressure, Tehran once again needs experienced figures for its “economic war.”
One of the first outlets to report his return was The Wall Street Journal. According to the newspaper, after his release Zanjani became one of the central players in networks helping Iran evade sanctions. His activities reportedly now revolve around cryptocurrency markets, allegedly helping finance Iran’s regional proxy networks.
A $94 Billion Transaction Network
According to the U.S. Treasury Department, two crypto exchanges linked to Zanjani—Zedcex and Zedxion—have processed more than $94 billion in transactions since 2022, including wallets associated with Iran’s Revolutionary Guards.
Washington imposed sanctions on Zanjani in January. He denies all allegations.
U.S. officials describe these platforms as a “terror financing network,” arguing that Zanjani used money-laundering operations to channel resources into Revolutionary Guard projects.
Zanjani himself does not exactly hide his role. In interviews, he openly explains how he served Iran by circumventing Western sanctions and frequently refers to himself as an “economic soldier.”
In a recent post on X, he wrote:
“Even a small economic structure can be more powerful than any warship. A country that builds its economy can stand on equal footing with superpowers.”
From Chauffeur to a Multi-Billion Dollar System
Babak Zanjani’s rise was far from ordinary.
Born into a working-class family in southern Tehran, he told Iran’s Aseman newspaper that he earned his first money selling jewelry in bazaars. Later, he worked as a driver for the head of Iran’s Central Bank before moving into currency trading.
He founded a small company exporting products—including sheep hides—to Turkey. But his real rise began after entering the oil trade on behalf of the Revolutionary Guards. Soon he attracted the attention of then-President Mahmoud Ahmadinejad and his circle.
Over time, Zanjani transformed into the operator of one of the largest money-laundering systems in Iranian history. He injected billions of dollars into Iran’s strained financial system.
Before turning forty, he controlled a network of roughly sixty companies—including banks, airlines, and cosmetics firms. Many of these entities functioned as shell companies designed to obscure oil and money flows.
In a 2013 interview, he described his role openly:
“My job was to bypass sanctions. I worked for my country.”
The $2.7 Billion Allegation
Zanjani allegedly managed oil sales through Labuan Island, a Malaysian tax haven. Iranian oil would change hands there via tankers sailing under various national flags.
According to the U.S. Treasury Department, Zanjani purchased a controlling stake in a Malaysian bank and established another bank in Tajikistan.
Through this financial system, money flowed into Turkey, where it was converted into gold and eventually transported to Iran.
The European Union sanctioned Zanjani in 2012; the United States followed in 2013.
But his real downfall came during Hassan Rouhani’s anti-corruption era. He was arrested and sentenced to death over allegations involving $2.7 billion in missing funds.
By 2024, after cooperating and returning part of the money, his sentence was reduced to twenty years in prison.
Then, as pressure on Iran intensified again during the Trump era, he was released and put back into operation.
“I Distributed $8.5 Billion in Turkey”
Zanjani’s Turkish connections deserve an entire investigation of their own.
During his 22-month trial in Iran—which spanned 26 hearings—he made striking statements about Turkey. Turkish media barely followed the proceedings.
Yet Zanjani claimed that total commissions distributed in Turkey amounted to $8.5 billion.
In a defense statement of nearly 200 pages submitted to the court, he explained in detail how the Turkey-based system operated.
Despite these disclosures, he was convicted under the charge of “spreading corruption on Earth.”
Throughout the trial, Iranian media published extensive reports on the Turkish dimension of the investigation.
Iranian authorities argued that a substantial portion of the money removed from Iran had ended up in Turkey.
Zanjani openly identified Reza Zarrab as his principal contact in Turkey.
Court records repeatedly mentioned Turkey. Zanjani never denied paying bribes.
He described in detail how an aircraft carrying 1,500 kilograms of gold was detained in Istanbul and later released after bribes were allegedly paid.
He also openly admitted routing Iran’s oil revenues through Zarrab in Turkey.
How Were Billions Laundered?
The system allegedly worked roughly as follows:
Tankers, airlines, and ports were acquired. Small tankers transported Iranian oil to waters off Malaysia. There the oil was transferred to larger tankers and sold to markets in South Korea, Singapore, India, and elsewhere.
The proceeds were converted into gold. The gold circulated through banks in multiple countries.
The system moved approximately two million barrels of oil daily—representing around $90 billion annually.
Zanjani financed gold purchases in East Asia through financial institutions. Using Onur Air and other leased airlines, the gold was transported into Turkey.
The gold was processed under different identities, shipped to Dubai, melted into jewelry, and then smuggled into Iran by boat, where it was converted back into bullion.
Massive Commissions and Bribes
According to Zanjani, commissions—or what he openly described as bribes—were unavoidable in such a vast underground system.
He claimed that 20–25 percent of all money flows went toward laundering commissions.
His own share, he said, was only two percent.
He stated that five percent remained in Dubai and another five percent in Turkey.
Zanjani also admitted that substantial bribes were paid to Turkish officials through his Turkish associates.
He even identified three Turkish ministers and detailed how much they allegedly received.
The total, according to his figures, approached $137 million.
The overall amount of commissions and bribes distributed in Turkey, he claimed, reached $8.5 billion.
The Most Critical Allegation: Terror Financing
Given the scale of the money flows and cross-border criminal activity, international media eventually took notice.
According to allegations highlighted by Deutsche Welle, approximately $20 billion disappeared within Zanjani’s system.
Reports claim that $2 billion was transferred by Iran to Shiite militias and Hezbollah in Syria.
Another $1 billion allegedly moved through Turkey to groups such as Al-Nusra and Ahrar.
Other portions reportedly reached ISIS through Dubai.
If these claims are true, then opposing sides in the Syrian conflict were effectively financed through the same shadow financial network.
This would also make it easier to understand why the Erdoğan government has worked so aggressively to shut down the Halkbank issue over the years.
Who Is the New “Zarrab”?
This is now the central question.
Mounting pressure from the U.S.-Israel axis against Iran has opened a new space for Zanjani. Tehran has made clear that it wants to once again utilize his “skills.”
Yet the system Zanjani built cannot function without Turkey.
The Turkish branch of this network requires a facilitator.
For years, Reza Zarrab played that role. He now lives in the United States under the name Aaron Goldsmith, reportedly building a new life in Miami.
He is not expected to return to Turkey anytime soon.
Which leaves the real question:
Who are Turkey’s new Zarrabs?
And this time there are no police officers to stop suitcases full of cash, nor prosecutors willing to investigate.
Meaning the Erdoğan government may now be able to participate quite comfortably in Iran’s new phase of “economic jihad.”
