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Iranian Revolutionary Guard Officers Accused of $21 Million Cryptocurrency Theft
Senior officers within Iran’s Revolutionary Guard are facing accusations of stealing roughly $21 million in cryptocurrency. The alleged pilferage reportedly occurred during an investigation into a corruption case.
Cryptocurrency Exchange Probe Leads to Alleged Embezzlement
The purported theft transpired amidst an inquiry into Cryptoland, a digital currency exchange that was shut down following the apprehension of its Chief Executive Officer, Sina Estavi, in May 2021, according to an Iran International report on Sunday.
Blockchain records reportedly indicated that six billion BRG tokens, created by Estavi, were moved from his cryptocurrency wallet a day after his detention. These tokens were purportedly sold by Revolutionary Guard officers, generating millions in illicit gains for themselves.
Key Interrogators Implicated in Token Sale
A court-appointed expert identified two senior interrogators from the Revolutionary Guard’s economic branch, Mehdi Hajipour and Mehdi Badi, as key figures in the alleged scheme. The expert’s findings purportedly confirmed that wallets controlled by Hajipour were involved in the sale of over $21 million worth of BRG tokens.
Hajipour was subsequently apprehended in March 2022 by Revolutionary Guard counterintelligence agents. The arrest occurred during a sting operation where he was allegedly accepting a $10,000 payment from Estavi, who believed he was repurchasing the purportedly stolen tokens from a third party.
Revolutionary Guard’s Silence and Mandate
The Revolutionary Guard, a branch of Iran’s armed forces, is tasked with safeguarding the regime against both internal and external threats. Sepah News, the media arm of the Revolutionary Guard, did not immediately respond to requests for comment.
Broader Context: Iran’s Cryptocurrency Regulations
The alleged theft occurs as Iran has been developing a cryptocurrency regulatory framework. This initiative was announced last year as part of an effort to mitigate the impact of crippling sanctions that have severely affected its economy due to strained relations with Western nations.
The regulatory aim is to “eliminate negative impacts while leveraging positive effects” of digital currencies and integrate Iran’s financial activities more closely with the global economic landscape.
Cryptocurrency as a Hedge in Iran
A research report from blockchain analysis firm Chainalysis in February indicated that cryptocurrency outflows from Iranian exchanges, including Bitcoin (CRYPTO: BTC), increased during periods of heightened geopolitical instability. This suggests that individuals in Iran are increasingly utilizing digital assets as a hedge against economic uncertainty.