Israeli Hackers Crush Iran’s Crypto: $90M Vanishes in Bold Strike
Pro-Israel hackers from Predatory Sparrow devastated Iran’s crypto market by breaching Nobitex, stealing $90 million, and exposing regime surveillance, causing a sharp decline in trading volume.
Iran’s cryptocurrency market is reeling from a devastating cyberattack by the pro-Israel hacker group Predatory Sparrow, which targeted Nobitex, the country’s largest crypto exchange, on June 18, 2025. The attack, which drained over $90 million, coincided with the 12-day Israel-Iran war and widespread internet shutdowns, leading to a 76% plunge in Iran’s crypto trading volume in July compared to the previous year. From January to July, trading volume dropped 11% to $3.7 billion, with a sharp 50% decline in June, per TRM Labs data. The hackers transferred the stolen funds to inaccessible blockchain addresses labeled with anti-IRGC messages, ensuring the funds were “burned” to deliver a political blow rather than financial gain.
The Nobitex breach exposed Iran’s regime surveillance capabilities, with leaked source code revealing warrantless monitoring of users while shielding VIP accounts. Evidence also linked Nobitex to Hamas-affiliated media and IRGC operatives, fueling accusations of sanctions evasion. In July, Tether froze 42 Iran-linked wallets, over half tied to Nobitex, prompting a regime-backed campaign urging users to switch from USDT to DAI on the Polygon network for faster, cheaper transactions. “These cyberattacks are the result of Nobitex being a key regime tool for financing terrorism and violating sanctions,” Predatory Sparrow stated on X.
For ordinary Iranians, crypto is a lifeline amid rampant inflation and global financial isolation, enabling international transactions. However, the regime exploits crypto to procure drone components, AI hardware, and pay foreign agents, including three Israelis arrested for spying in 2024. The attack, following Predatory Sparrow’s breach of Iran’s Bank Sepah, underscores an escalating Israel-Iran cyberwar, with Iran facing over 6,700 DDoS attacks in June, per Fars News Agency. The fallout has shaken trust in Iran’s crypto ecosystem, with Nobitex’s website still offline as it grapples with recovery.