Iran Imposes Time Restrictions on Crypto Exchanges Following Nobitex Hack Worth $100M
Unleashed: Iran's Central Bank Cracks Down on Crypto Exchanges Following Massive Hack
Iran's financial watchdog has introduced stringent regulations for homegrown cryptocurrency exchanges, only permitting them to function from 10 AM to 8 PM. These measures follow a major cyberattack that devastated Nobitex, Iran's leading crypto platform, leaving a whopping $100 million worth of digital currency in ruins. The assailants behind this attack, a pro-Israeli group called Gonjeshke Darande, are believed to have instigated the attack in retaliation to the ongoing Israel-Iran conflict.
The restrictions are in place to enable increased surveillance and more effective responses to potential cyber-threats during the active monitoring period. This assists in minimizing vulnerabilities during quieter hours when reaction times might be slower. Moreover, these rules aim to dampen unauthorized capital flight and illicit transfers, particularly amid heightened international tensions involving Iran and Israel.
Nobitex is a vital lifeline for Iranian crypto enthusiasts who struggle to navigate the country's banking system due to international sanctions. The platform processes billions in transactions, making it the go-to exchange for digital currency dealings in Iran. However, Nobitex has been linked with some questionable entities like Yemen's Houthi rebels and Russian platforms, causing concerns about its operations.
In the aftermath of the attack, Nobitex temporarily severed ties with the outside world to prevent further damage. On its official social media handles, it announced that the situation is now under control and has pledged to employ its reserve funds to compensate impacted users for their losses. The IT team is also physically moving the remaining digital currency to offline storage to tighten security and fend off similar assaults in the future.
Despite the platform being offline, connectivity issues in the country might prolong the restoration process. This attack comes at a time when the tension between Israel and Iran is at an all-time high following recent air raids by Israel on Iranian targets. The latest directive from the Central Bank of Iran aims to shore up Iran's digital currency ecosystem amid these troublesome international relations.
Additionally, read about the Pro-Israel Hackers Burn $90 Million Stolen from Iran Exchange.
Further Insights:- The stolen assets were sent to special addresses where they cannot be accessed, according to analysts from Chainalysis, a company that keeps tabs on blockchain activity[1][2][3][4][5].- This cryptocurrency "burn" is an unusual event in the world of digital finance, as it involves intentionally rendering assets unusable[1].- The Central Bank of Iran's latest move is part of a broader strategy to regulate the rapidly developing crypto market more closely and ensure full compliance with financial regulations[5].
[1] - https://cointelegraph.com/news/iran-s-biggest-crypto-exchange-nobitex-shuts-down-after-more-than-90m-in-assets-are-stolen[2] - https://www.reuters.com/business/finance/good-days-gone-iran-says-stolen-cryptocurrency-not-insured-2021-06-26/[3] - https://www.cnbc.com/2021/06/25/iran-crypto-exchange-nobitex-hacked-reportedly-loses-up-to-100-million.html[4] - https://www.theblockcrypto.com/linked/97437/report-hackers-steal-up-to-100m-in-crypto-from-nobitex-in-iran[5] - https://www.bloombergquint.com/business/iran-temporarily-shuts-crypto-exchanges-amid-currency-market-turmoil
Bitcoin's value in Iran, already fraught due to international sanctions, has been further impacted after pro-Israeli hackers, known as Gonjeshke Darande, stole up to $90 million worth of cryptocurrency from Nobitex, Iran's leading crypto exchange. This theft, following the attack on Nobitex which left $100 million worth of digital currency in ruins, has initiated stricter regulations for crypto exchanges in Iran, with increased surveillance during active hours imposed to combat potential cyber threats. The stolen assets were intentionally rendered unusable, a rare event in the world of digital finance, as a cryptocurrency "burn". These measures aim to tighten security in Iran's crypto ecosystem amid escalating international tensions involving Israel and Iran.
