US blacklists Iran’s largest crypto exchange for helping Islamic Republic skirt sanctions

The United States has imposed sanctions on Iran's largest cryptocurrency exchange, Nobitex, accusing it of facilitating the Iranian government's efforts to circumvent Western sanctions. The Treasury Department stated that Nobitex provided "significant support" to the Iranian government and processed a "significant number" of digital transactions linked to the Islamic Revolutionary Guard Corps (IRGC) and Iran's central bank.

These new sanctions are a direct consequence of a Reuters investigation published on May 1. The report detailed how Nobitex had become a critical hub in a parallel financial system, processing hundreds of millions of dollars for Iran's central bank and the IRGC. The investigation also revealed that Nobitex continued to operate and process millions of dollars in transactions even during government-imposed internet shutdowns.

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While Iran’s economy is in free fall, the regime has chosen to co-opt digital asset technologies for its own corrupt agenda, including evading sanctions and transferring wealth out of the country

Treasury Secretary Scott Bessent asserted that Iran's regime is exploiting digital asset technologies for its "corrupt agenda," including evading sanctions and moving wealth out of the country amidst its economic struggles. In addition to Nobitex, three other exchanges were blacklisted. The Treasury also individually sanctioned two brothers from the influential Kharrazi family, who control Nobitex, along with the exchange's chief executive officer, Amir Hossein Rad.

The Reuters investigation identified the brothers as Seyed Mohammad Ali Aghamir Mohammad Ali and Seyed Mohammad Aghamir Mohammad Ali. The Treasury stated that Nobitex played a role in protecting and moving assets out of Iran to shield regime wealth, even amidst internet blackouts following the commencement of U.S. combat operations in Iran. Nobitex, in a previous statement to Reuters in April, denied having direct government connections and claimed that any illicit funds moving through the platform did so without management approval or awareness. The company also denied that the brothers had ever used alternative identities.

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Following the commencement of US combat operations in Iran, Nobitex played a role in protecting and moving assets and funds out of Iran to shield regime wealth despite internet blackouts.