- Reuters discovered that Nobitex had processed millions for Iran’s central bank, the IRGC.
- The Treasury sanctioned the founders and CEOs of Nobitex for assisting reported entities.
- The company denies any direct connection to the government or knowingly facilitating illicit transactions.
The United States announced sanctions against Iran’s largest cryptocurrency exchange on Tuesday, accusing it of allowing the Iranian government and blacklisted public institutions to circumvent Western sanctions.
The new sanctions follow a Reuters investigation published on May 1, which showed how Nobitex became a central node in a parallel financial system used to process hundreds of millions of dollars for Iran’s central bank and the Islamic Revolutionary Guard Corps (IRGC).
The report also reveals how Nobitex continued to operate even after the government-mandated internet shutdown, processing millions of dollars in transactions.
“As Iran’s economy is in free fall, the regime has chosen to co-opt digital asset technologies for its own corruption agenda, including avoiding sanctions and moving wealth out of the country,” Treasury Secretary Scott Bessent said in a statement.
THE Reuters The investigation showed that Nobitex is controlled by two brothers from one of Iran’s most powerful families, with close ties to the new supreme leader.
Both are members of the Kharrazi family, one of the most influential dynasties in the Islamic Republic.
Company records show that in the early days of the exchange, the brothers were listed under a last name rarely used by family members.
The US Treasury announced on Tuesday that the two brothers, Seyed Mohammad Ali Aghamir Mohammad Ali and Seyed Mohammad Aghamir Mohammad Ali, had also been sanctioned individually, along with the exchange’s chief executive, Amir Hossein Rad.
Nobitex provided “significant support” to the Iranian government and facilitated a “significant number” of digital transactions linked to the IRGC and the Iranian central bank, the US Treasury said in the statement.
“After the start of U.S. combat operations in Iran, Nobitex played a role in protecting and moving assets and funds out of Iran to protect regime wealth despite internet shutdowns. »
Nobitex could not be reached for comment on the sanctions, which were announced after normal business hours in Iran.
In an emailed statement to Reuters in April, Nobitex said it had no direct ties to the government and denied aiding the state.
He said any illicit funds flowing through Nobitex did so without management approval or knowledge.
The company also said that the two brothers never used an alternate identity or changed their identities.
