Iran's Nobitex Exchange Processes Transactions Linked to Sanctioned Groups

Nobitex, Iran's largest cryptocurrency exchange, has been processing transactions linked to sanctioned groups, according to a Reuters investigation.

The exchange is controlled by two brothers from the Kharrazi family, one of the most influential dynasties in the Islamic Republic. When Nobitex started, the brothers were listed under an alternative surname rarely used by members of the family.

Nobitex claims 11 million users, more than 10% of Iran's population. Locked out of international banking and facing a devalued rial and inflation, ordinary Iranians use the exchange to buy and hold cryptocurrency.

While Iran is subject to Western economic sanctions, Nobitex has avoided being designated by the United States and its allies. It serves as a bridge to global crypto markets and a central node in a parallel financial system used to move funds beyond the reach of sanctions, according to blockchain analysis and interviews with investigators.

Nobitex denied having direct government connections or assisting the state, saying any illicit funds moving through the exchange did so without management approval or awareness. The company claims it is a private and independent business with no relationship with government bodies.