U.S. Imposes Sanctions on Iran’s Largest Cryptocurrency Exchange Over Alleged Sanctions Evasion

LONDON: The United States has imposed sanctions on Iran’s largest cryptocurrency exchange, Nobitex, accusing the platform of helping the Iranian government and sanctioned state institutions bypass Western economic restrictions and move funds through digital asset networks.

The sanctions, announced by the U.S. Treasury Department on Tuesday, target Nobitex as well as several senior individuals associated with the exchange. U.S. authorities allege that the platform played a significant role in facilitating transactions linked to Iran’s government, the central bank, and the Islamic Revolutionary Guard Corps (IRGC).

In a statement, U.S. Treasury Secretary Scott Bessent said the Iranian government had embraced digital asset technologies to advance its financial interests and evade international sanctions despite the country’s economic difficulties.

The sanctions follow a Reuters investigation published on May 1, which identified Nobitex as a key component of what it described as a parallel financial system used to process hundreds of millions of dollars for Iranian state-linked entities. The report also alleged that the exchange continued operating during government-imposed internet shutdowns, processing millions of dollars in transactions despite widespread connectivity disruptions.

According to the U.S. Treasury, Nobitex provided “significant support” to the Iranian government and facilitated numerous digital asset transactions connected to the IRGC and Iran’s central bank. The department further alleged that, following the commencement of U.S. military operations involving Iran, the exchange assisted in transferring assets outside the country to protect regime-linked wealth during internet blackouts.

The Treasury Department also sanctioned Nobitex’s chief executive officer, Amir Hossein Rad, along with two brothers identified as Seyed Mohammad Ali Aghamir Mohammad Ali and Seyed Mohammad Aghamir Mohammad Ali. U.S. authorities claim the brothers exercised control over the exchange and maintained ties to one of Iran’s most influential political families.

Reuters previously reported that the two men are members of the Kharrazi family, a prominent political dynasty in the Islamic Republic, although the brothers and the company have denied allegations of wrongdoing.

Nobitex did not immediately comment on the sanctions announcement. However, in a statement posted on its Telegram channel on Wednesday, the exchange said it had long anticipated the possibility of sanctions-related challenges due to what it described as the unique circumstances faced by Iranian businesses operating internationally.

The company stated that it had made technical and operational preparations to address such developments and ensure continuity of its services.

In an earlier response to Reuters, Nobitex denied having direct links to the Iranian government or assisting state institutions in evading sanctions. The exchange maintained that any illicit transactions that may have passed through its platform occurred without the knowledge or approval of management. It also rejected claims that the sanctioned brothers had used alternative identities.

The latest measures underscore Washington’s continued efforts to tighten enforcement of sanctions against Iran and target financial channels that U.S. authorities believe are being used to support sanctioned entities and circumvent international restrictions.