U.S. Treasury Sanctions Iran’s Largest Cryptocurrency Exchange, Nobitex
The U.S. Treasury has enacted sanctions against four cryptocurrency exchanges operating in Iran, including Nobitex, due to their involvement in facilitating access to the digital asset market for sanctioned entities.
Summary
- The U.S. Treasury has imposed sanctions on four Iranian crypto exchanges, including Nobitex, as part of its Economic Fury initiative aimed at Iran.
- The Treasury claims Nobitex has enabled transactions for sanctioned entities, with Chainalysis reporting that the platform handles about 50% of Iran’s cryptocurrency trading volume.
- This action follows the Treasury’s announcement of nearly $1 billion in cryptocurrency seizures from Iranian exchanges and wallets since the onset of the conflict.
The U.S. Department of the Treasury has targeted Nobitex, Wallex, Bitpin, and Ramzinex under its ongoing “Economic Fury” initiative against Iran. U.S. individuals and entities are now prohibited from providing services to these sanctioned exchanges.
Treasury Secretary Scott Bessent stated that the Iranian government has leveraged digital asset technologies to evade sanctions and transfer wealth amidst worsening economic conditions. He emphasized that the Treasury will continue to monitor financial activities related to Iran through both traditional banking and cryptocurrency channels.
Initiated on April 14, the Economic Fury campaign has become crucial in Washington’s strategy to financially isolate Iran following joint U.S. and Israeli operations that sparked the conflict in February. U.S. officials have linked this campaign to efforts aimed at hindering Iran’s nuclear program advancement.
Shortly before announcing the new sanctions, Bessent disclosed that the Treasury had reclaimed nearly $1 billion in cryptocurrency from Iranian exchanges and wallets since the conflict began.
Treasury focuses on Iran’s largest crypto exchange
As per blockchain analytics firm Chainalysis, Nobitex is integral to Iran’s “digital dollar pipeline,” accounting for roughly 50% of the country’s cryptocurrency trading activities.
The Treasury has identified Nobitex as a key financial platform serving sanctioned Iranian factions, including the Islamic Revolutionary Guard Corps.
The Treasury also accused the exchange of supporting surveillance operations targeting Iranian civilians.
In addition to the exchange, the Treasury has placed Nobitex’s CEO Seyed Ali Khoee and Chairman Amir Hossein Rad on the Office of Foreign Assets Control sanctions list.
Recent reports from Reuters have provided additional insights into the exchange, revealing that Nobitex was founded in 2018 by siblings Ali and Mohammad Kharrazi, known by their family name Aghamir, who are part of a politically connected Iranian family.
According to Reuters, Nobitex claims to have 11 million users and processes about 70% of Iran’s cryptocurrency transactions.
Nobitex has denied any official ties to the government, branding itself as a private and independent entity. The exchange informed the news agency that it has no contracts or direct relationships with the IRGC, Iran’s central bank, or any other governmental bodies.
Crypto activities related to Nobitex have attracted attention during times of military conflict. Previous reports by crypto.news, referencing data from Elliptic, noted that withdrawals from the platform skyrocketed by over 700% shortly after U.S. and Israeli airstrikes in Tehran.
As per Elliptic, withdrawals exceeded $500,000 immediately following the attacks and reached nearly $3 million between February 28 and March 1.
While Elliptic highlighted that Nobitex allows users to convert Iranian rials to cryptocurrency and transfer funds to external wallets, TRM Labs offered a more cautious assessment. TRM Labs suggested that some of the activity might have been impacted by internet outages, which reportedly reduced transaction volumes by around 99% in Iran.
Actions taken against Iran have already restricted access to funding channels amounting to tens of billions of dollars, as noted by the Treasury Department. Recent measures have included sanctions targeting alleged shadow banking operations, entities involved in Iran’s oil trade, and foreign officials accused of aiding Tehran’s military initiatives.
Focus on cryptocurrency in Treasury enforcement
The recent sanctions are part of a broader pattern of Treasury initiatives aimed at cryptocurrency infrastructures believed to support sanctioned governments, terrorist groups, and criminal networks.
In May, sanctions were imposed on two networks linked to Mexico’s Sinaloa Cartel, under allegations that cryptocurrency transactions were used to facilitate profits from fentanyl trafficking. Multiple individuals and six Ethereum wallet addresses were designated in this effort.
During that time, Bessent asserted that authorities would persist in their pursuit of financial networks exploited by criminal organizations. The Treasury has reiterated that sanctions, asset seizures, and wallet designations remain essential tools in its campaign to disrupt funding channels for adversarial states and illicit actors.