The recent hack of the Iranian cryptocurrency exchange Nobitex demonstrated that the country's crypto economy operates more as a tool of state control rather than as a market. The incident highlighted the platform's role in surveillance and the protection of state interests.
Deep Control Over Nobitex
During the cyberattack carried out by Israel-linked hackers, $90 million was siphoned from Nobitex. However, the breach revealed not only the loss of funds but also the deep influence of the Iranian state over the exchange's operations. Platform leaders succumbed to pressure from Iranian authorities, providing preferential treatment to regime-linked users.
Surveillance Architecture
TRM Labs' analysis showed that Nobitex's system was designed to allow Iranian security services to surveil users without legal oversight. The system contained secret modules for obfuscating transactions and protecting VIP accounts from scrutiny. These aspects undermine any attempts to present the platform as decentralized and neutral.
Crisis of Trust Post-Incident
Following the hack, Nobitex experienced a 70% drop in deposits, indicating users' panic flight from an exchange now seen as discredited. The authorities' reaction complicated matters: the implementation of bans on overnight trading led to skyrocketing crypto prices on P2P markets. This incident has catalyzed a crisis of confidence in Iran's crypto economy.
The Nobitex breach exposed hidden mechanisms of state control over Iran's crypto economy, threatening the future of the platform and the very notion of cryptocurrency in the country.
