Iran's cryptocurrency industry is at the center of a scandal after revelations of fraud involving IRGC officers who embezzled significant sums of digital assets. This situation has led to substantial financial losses among thousands of investors, raising questions about regulatory integrity in the country.
Corrupt Investigators Amass Millions
Key figures involved in the scheme include senior investigators from the IRGC's economic unit: Mehdi Haji Pour and Mehdi Badi. Initially, Haji Pour had assets worth only $40,000, but within four months, his wealth soared to $14.2 million. Four other IRGC members were also involved in the money-laundering operation, directed by 'Dr. Ebadi'.
The Scheme Unravels
The fraud was uncovered in March 2022 following Haji Pour's arrest, who attempted another scam under a false identity. The arrest was pivotal in revealing the scheme, though details on the sentences and terms for all involved remain undisclosed.
Catastrophic Losses for Investors
The collapse of Cryptoland resulted in significant financial losses for 51,000 investors. Only 24,000 were compensated with $14 million, leaving 25,000 without reimbursement. Estavi received a 15-year sentence but later appeared in a video from France despite a travel ban.
This scandal raises serious concerns about the security of Iran's cryptocurrency market and its ability to effectively regulate digital assets. Investors remain cautious, fearing further fraudulent activities.
