The ongoing conflict between Iran and Israel continues to have repercussions across multiple sectors, and Iran’s cryptocurrency ecosystem is no exception. Recent analysis highlights a significant crisis at Nobitex, Iran’s largest crypto exchange, which is facing an unprecedented loss of trust following a cyberattack and rising geopolitical tensions.
A Hack That Exposed Critical Vulnerabilities
On June 18, 2025, the cyber group Predatory Sparrow, linked to Israel, carried out a major attack that disrupted Nobitex’s operations for several days. This hack not only compromised funds but also exposed structural weaknesses in Iran’s crypto infrastructure.
As a result, users began to withdraw funds en masse. Reports show that outflows on Nobitex surged by over 150%, while incoming transaction volumes dropped by 70% year-over-year.
Distrust and State Control
The crisis deepened when Nobitex’s source code was leaked, revealing two key government priorities:
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Extensive state surveillance of transactions and user activity.
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Special protection for VIP accounts linked to regime insiders, who appear to enjoy privileges on the platform.
These revelations have fueled public distrust, with many viewing Nobitex as a state-controlled tool rather than an independent crypto exchange.
Fund Reorganization and Sanctions Evasion
Post-hack, analysts tracked unusual activity from previously dormant mining wallets. These dormant wallets were reactivated and consolidated into new hot wallets, a strategy believed to serve two purposes: securing assets and sustaining Iran’s sanctions evasion efforts by discreetly liquidating crypto holdings.
Impact on Iran’s Digital Economy
Nobitex’s crisis represents a major setback for Iran’s crypto market, which had been seen as a key alternative for bypassing financial restrictions. The massive capital flight and growing distrust could slow crypto adoption at a time when Iran relies on digital assets as a strategic economic tool.
Conclusions
The Nobitex case illustrates how geopolitical conflicts extend beyond the battlefield, directly impacting digital finance. With trust eroding and exchanges under pressure, the future of Iran’s crypto ecosystem remains uncertain.
Source: Inside the Nobitex Hack: How the Iran-Israel Conflict Exposed Tehran’s Grip on Its Crypto Services