US Bans Iran’s Biggest Crypto Exchange Because It Has Ties to the Revolutionary Guard
The US has put sanctions on Iran’s biggest cryptocurrency exchange, saying that it helps groups that are under US sanctions move money and get around limits.
The US has put sanctions on Nobitex, which is Iran’s biggest bitcoin exchange, because it is thought to be helping the Iranian government and sanctioned groups, like the Islamic Revolutionary Guard Corps (IRGC), get around Western sanctions. The US Treasury Department announced the sanctions on Tuesday. They also target Amir Hossein Rad, the CEO of Nobitex, and two members of the powerful Kharrazi family, who the US government says runs the exchange.
The move comes after a May report from Reuters that said Nobitex had become an important part of a banking network that the IRGC and Iran’s central bank used to handle hundreds of millions of dollars. The study also found that the exchange kept running even when the government shut down the internet.
Treasury Secretary Scott Bessent said, “Even though Iran’s economy is in free fall, the regime has chosen to use digital asset technologies for its own corrupt goals, such as getting around sanctions and sending money out of the country.”
The Treasury says that Nobitex gave the Iranian government “significant support” and made it possible for a “significant number” of digital transactions to be linked to the IRGC and Iran’s central bank. The bank said the trade also helped get things out of Iran after the US started military actions against the country.
Nobitex said it had no direct ties to the Iranian government and that the company’s management would have been unaware of any abuse of its platform. The business also said that it had been expecting such steps because of long-standing problems in the international banking system.
The Treasury also put sanctions on Bitpin, Ramzinex, and Wallex, three other digital asset platforms based in Iran, as well as four Iranians who had ties to the sector. The US government could punish foreigners and financial institutions for conducting certain business with sanctioned companies.
