The United States has imposed sanctions on Iran’s largest cryptocurrency exchange, Nobitex, accusing it of helping the Iranian government and sanctioned institutions, including the Islamic Revolutionary Guard Corps (IRGC), evade Western sanctions.

The sanctions, announced by the US Treasury Department on Tuesday, also target Nobitex Chief Executive Amir Hossein Rad and two members of the influential Kharrazi family, whom US authorities allege control the exchange.

The move follows a Reuters investigation published in May which found that Nobitex had become a key part of a financial network used to process hundreds of millions of dollars for Iran’s central bank and the IRGC. The investigation also reported that the exchange continued operating during government-imposed internet shutdowns.

Treasury Secretary Scott Bessent said, “While Iran’s economy is in free fall, the regime has chosen to co-opt digital asset technologies for its own corrupt agenda, including evading sanctions and transferring wealth out of the country.”

According to the Treasury, Nobitex provided “significant support” to the Iranian government and facilitated a “significant number” of digital transactions linked to the IRGC and Iran’s central bank. The department said the exchange also helped move assets out of Iran following the start of US military operations against the country.

Nobitex denied having direct ties to the Iranian government and said any misuse of its platform occurred without the knowledge of its management. The company added that it had anticipated such measures because of longstanding challenges operating within the international financial system.

The Treasury separately sanctioned three other Iran-based digital asset exchanges; Bitpin, Ramzinex and Wallex, along with four Iranian nationals linked to the sector. US authorities warned that foreign individuals and financial institutions could face penalties for conducting certain transactions with the sanctioned entities. (Arise News)

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