Guard

Bank

2024

Arkham

International exchanges have frozen Iranian crypto assets and blocked their accounts after Intel revealed local exchanges may be working for the Iranian government. 
International centralized exchanges exited the Iranian market following primary and secondary sanctions from the U.S. government. The exit created a gap that local entrepreneurs have filled over time with local exchanges such as Nobitex.
The crypto market in Iran is facing tough times following U.S. sanctions. Citizens of Iran have had their accounts blocked and assets frozen by international exchanges after Intel revealed local Iranian exchanges may be collaborating with the government of Iran.&nbsp;
U.S. sanctions force international exchanges out of Iran, leading to a rise in local exchanges
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 This study illuminates the intricate network of sanctions-violating exchanges in Iran. <a href="https://twitter.com/hashtag/nobitex?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#nobitex</a> , <a href="https://twitter.com/hashtag/Wallex?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#Wallex</a> , and <a href="https://twitter.com/hashtag/Bitpin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#Bitpin</a> have been identified as high-risk entities. I would like to express my sincerest gratitude to <a href="https://twitter.com/lilycap_?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@lilycap_</a> and <a href="https://twitter.com/Ryan_S_Gladwin?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@Ryan_S_Gladwin</a> for their guidance. <a href="https://t.co/FYkePnlrA1" rel="noopener noreferrer nofollow" target="_blank">https://t.co/FYkePnlrA1</a>
 — Maria Noor (@MARIANOOR_BTC) <a href="https://twitter.com/MARIANOOR_BTC/status/1848697521419288833?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">October 22, 2024</a>
</blockquote>
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U.S. sanctions forced international crypto exchanges to exit the Iran market, leaving behind a void that local entrepreneurs have filled over time. Despite the increased sanctions due to geopolitical factors, Iran’s crypto market has grown significantly, according to recent statistics. Iran has over 90 different crypto exchanges, out of which more than 10 operate as centralized exchanges.&nbsp;
According to OSINT freelancer <a href="https://x.com/MARIANOOR_BTC/status/1848697521419288833" rel="noopener noreferrer nofollow" target="_blank">Maria Noor</a>, the country boasts about 19 million active crypto users. Six million Iranians use Nobitex, the largest centralized exchange in Iran.
Intel from open-source intelligence (OSINT) and insiders have revealed that the exchange may be collaborating with the Iranian government and Islamic Revolutionary Guard Corps (IRGC). The news sparks speculation that the exchange may be collaborating with the Iranian government to violate international money laundering and terrorism financing laws.
In May this year, two U.S. senators wrote to the Secretary of the Treasury, the National Security Advisor, and the Secretary of Defense, raising concerns about Nobitex’s reported activities that could facilitate the Iranian government with money laundering and terrorism financing channels.
<h3 id="span-style-font-weight-400-investigations-link-nobitex-shareholders-to-the-iranian-islamic-revolutionary-guard-corps-irgc-span">Investigations link Nobitex shareholders to the&nbsp; Iranian Islamic Revolutionary Guard Corps (IRGC)</h3>
A deeper OSINT investigation into Nobitex’s ownership revealed that the exchange’s main owners have close links with Iran’s Supreme Leader. The reports indicate that these individuals have continuously engaged in economic activities aimed at violating sanctions and laws.&nbsp;
These shareholders include Seyed Mohammad Baqer Kharazi, a relative of the Supreme Leader and a business partner of Mohsen Rezaee Mirqaed. Rezaee Mirqaed is the founder of the IRGC and a senior commander of the organization’s intelligence unit.
The Persian-speaking crypto community reported account blockages and wallet restrictions after transacting from Nobitex to international centralized exchanges. Arkham Platform, a blockchain data analytics firm, recently flagged wallet addresses linked to the Iranian exchange. The news caused increased public outcry from Iranian citizens on social media channels such as Telegram and X (formerly Twitter).
Since 2017, it has been almost impossible for Iranians to use international centralized exchanges since the Trump administration intensified sanctions in the area, causing a rise in strict Know Your Customer (KYC) regulatory standards and anti-money laundering regulations.&nbsp;
Binance founder and former CEO Changpeng Zhao (CZ) was sentenced to four months in prison after pleading guilty to violating U.S. laws on money laundering while overseeing Binance’s operations. According to prosecutors, CZ violated the Bank Secrecy Act by allowing millions of dollars worth of trades involving the Palestinian terror group Hamas’s al-Qassam Brigades, al-Qaeda, and Iran.

U.S. sanctions lead to Iranians’ frozen crypto assets in CEXs amid escalating global tensions

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