A new Reuters investigation has raised serious questions about Iran’s largest cryptocurrency exchange, Nobitex, describing it as a major channel in a parallel financial system that helps money move around US sanctions—using both the country’s security-linked institutions and everyday users.
Even more concerning, the report says the exchange is controlled by two sons from the influential Kharrazi family, a powerful political and clerical clan closely connected to Iran’s new supreme leader.
Crypto Moves Linked To Sanctions
Nobitex was launched in 2018 by brothers Ali and Mohammad Kharrazi, who created the business under an alternative family name. According to Reuters, the company claims it has about 11 million users—more than 10% of Iran’s population.
Reuters reports that ordinary Iranians have turned to the platform as they face a “weak rial and persistent inflation,” along with barriers that make traditional banking less accessible.
At the same time, Reuters says the exchange has processed transactions worth between “tens of millions and hundreds of millions of dollars” connected to sanctioned groups, including Iran’s central bank and the Islamic Revolutionary Guard Corps (IRGC).
The investigation adds that Nobitex is not just serving consumers, but also functions as a route for the Iranian state to move money to allies outside the conventional banking system.
Reuters based parts of this claim on blockchain analysis carried out by Crystal Intelligence, as well as interviews with four private financial investigators. To understand how the exchange operates in practice, Reuters spoke with nine Iranians who said they worked for or with Nobitex.
Nobitex Pushes Back
Six of the former employees interviewed by Reuters said they believed the crypto exchange was used by Iran’s government and security agencies to bypass Western financial sanctions.
Nobitex disputes that account, telling Reuters there had never been any agreement with any Iranian government agency, and that none of the employees interviewed by Reuters knew of one.
In its response, Nobitex said it has instead faced significant operational restrictions imposed by the Iranian government. The exchange cited office raids, domain blocking, and closures of banking gateways. Nobitex argued that these actions are inconsistent with the idea that it receives governmental support.
The report also links the brothers behind Nobitex to Iran’s ruling establishment through family history. Ali and Mohammad Kharrazi are the third generation of their family tied closely to the country’s leadership since the 1979 Islamic Revolution. It reports that Kharrazis have advised supreme leaders and held key political, diplomatic, and religious roles.
How Much Was Illicit?
Notably, Iran’s largest crypto exchange continued processing transactions during the war between the US and Israel, which began on February 28, and operated even during a government-imposed nationwide internet shutdown and widespread power outages in Tehran.
According to three blockchain analysis firms that track activity involving Nobitex and other crypto exchanges, Nobitex handled more than $100 million in transactions during that time—about 20% of its usual activity.
However, estimates of how much of Nobitex’s activity may involve illicit transfers vary widely. Elliptic estimated that $366 million was processed through the exchange, Chainalysis placed the figure around $68 million, while Crystal Intelligence estimated $22 million in direct transfers from sanctioned wallets.
Featured image from OpenArt, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.