The Central Bank of Iran has imposed operating hour restrictions on all local cryptocurrency exchanges following a hack of the largest platform, Nobitex, resulting in over $90 million in losses.
Background of the Nobitex Attack
The attack on Nobitex occurred on June 18 and was carried out by the hacker group Gonjeshke Darande, also known as Predatory Sparrow. According to data from the analytics platform Chainalysis, the stolen funds amounted to over $90 million, including Bitcoin, Ethereum, Dogecoin, and other assets. These were drained from hot wallets and subsequently burned as part of the operation aimed at destroying Iran's sanctioned financial infrastructure.
Iran's Response and Restrictions
In response to the incident, the Central Bank of Iran restricted the operating hours of all local crypto exchanges from 10 am to 8 pm. Chainalysis indicates that this curfew may signal increasing pressure on exchanges in Iran as the regime attempts to manage systemic risk in a market that plays a significant role in circumventing international sanctions.
Impact on Iran's Crypto Economy
Nobitex is regarded as a central pillar of Iran's crypto economy, processing over $11 billion in total inflows. The platform acts as the backbone for most on-chain activity and provides access to global markets for users cut off from traditional finance due to international sanctions. Furthermore, Nobitex was linked to wallets associated with various sanctioned and illicit actors.
The introduction of a curfew for crypto exchanges in Iran represents a response to the significant threat posed by the Nobitex attack and underscores the importance of controlling the crypto economy amid international sanctions.
