Hackers loot and demolish millions from Iran's top cryptocurrency exchange

Hackers steal $90 million, disrupting Nobitex, Iran's top exchange.

: Nobitex, Iran's largest crypto exchange, recently suffered a major security breach as hackers drained $90 million from its hot wallet, affecting 10 million users. The attack was claimed by the pro-Israel group Predatory Sparrow, which accused Nobitex of funding terrorism and evading sanctions. In the wake of these events, the exchange has shut down its website and app to investigate further. This incident follows another claim by Predatory Sparrow involving Iran's Bank Sepah, coinciding with increased tensions between Israel and Iran.

Nobitex, Iran's prominent cryptocurrency exchange, faced a significant security breach that resulted in losing a substantial portion of its digital assets. Hackers successfully infiltrated the platform's hot wallet, a digital wallet connected to the internet used to store some of their large customer base's cryptocurrencies. In its statement, Nobitex disclosed that the cyberattack led to an accumulated loss of $90 million, which hackers executed through numerous fraudulent transactions. This has forced Nobitex to take their website and application offline for thorough investigation and resolution efforts.

The cyberattack responsible for the substantial financial damage has been attributed to Predatory Sparrow, a hacking group with pro-Israel alignment. This group has made public statements via X, underscoring their motives centered around accusations against Nobitex, involving alleged financial support for terrorism and dodging international sanctions imposed on Iran. These allegations have intensified the scrutiny around Iran's largest public crypto exchange, bringing to light potential political and warfare motivations lurking beneath the cyber heist.

Public records affirm the vast financial scope of loss as the predatory group transferred the stolen cryptocurrency into wallets with no routes of recovery, effectively erasing $90 million from circulation. Elliptic, a blockchain analytics firm, highlighted this tactic as burning the funds by rendering them inaccessible permanently, marking the exchange’s post-theft journey not just a simple case of financial recovery, but an intricate saga involving broader implications on the crypto industry's security.

In a broader geopolitical backdrop, the cyberattack follows another claim by the same group against Iran’s Bank Sepah. With Predatory Sparrow taking credit for widespread ATM outages across the nation, tension between Israel and Iran escalates beyond mere geographical boundaries, heavily intertwining cyber warfare tactics with ongoing political conflict. Such incidents continue to blur the lines between technology and global diplomacy, with companies such as Nobitex caught in the crossfire.

As Israel and Iran engage in increasing hostilities, including cyber dimensions, statements from major Iranian news outlet IRIB describe these incidents as part of a larger cyber offensive initiated by Israel. As early as 2021, Predatory Sparrow has been noted for targeting several Iranian institutions, striving to dismantle their operational infrastructure digitally. With these events triggering a focus on the security measures of online financial platforms, especially in politically volatile regions, the enduring effects on crypto sustainability and international digital policy continue to evolve.

Sources: TechCrunch, BBC, IRIB

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