Iran Crypto Scandal: IRGC Officers Stole $21M in Shocking Crypto Heist

The Iranian cryptocurrency market has been shaken by a massive fraud scandal involving high-ranking officials. During an anti-corruption investigation into cryptocurrency, intelligence officers from Iran’s Islamic Revolutionary Guard Corps (IRGC) embezzled $21 million in cryptocurrency. This Iran crypto scandal has left thousands of buyers with financial loss, elevating serious concerns about the integrity of regulatory actions in the country.

The case revolves around Cryptoland’s CEO, Sina Estavi, who was arrested in 2021 for allegedly “disrupting the economic system.” However, what was once supposed to be an investigation of financial misconduct became a scheme in which the investigators themselves grew to become criminals.

How the Iran Crypto Theft Unfolded

A day after Estavi’s arrest, six billion BRG tokens (Cryptoland’s native cryptocurrency) were transferred from his wallet before the public was even aware of the scam. IRGC officials later sold these tokens for nonpublic gains. Blockchain analysis revealed that over $21 million of BRG tokens passed through wallets controlled by IRGC intelligence officers.

The two primary figures behind this operation were Mehdi Hajipour and Mehdi Badi, senior interrogators inside the IRGC’s economic intelligence unit. Before this illegal activity, Hajipour’s total property worth was approximately $40,000. However, in just four months, his wealth skyrocketed to $14.2 million, as he purchased gold, luxury real estate, and high-end motors using stolen funds.

The Network of Corruption and its Key Players

The Iran Crypto Scandal was not restricted to just two officers. Four other IRGC officers were involved in this fraudulent scheme. Majid Jahan Parto and Majid Tabatabaei assisted in laundering funds, while additional operatives manipulated documents to legitimize transactions.

Badi, working under “Dr. Ebadi”, had close ties to senior officials, including Ali Akbar Hosseini Mehrab, the former deputy for economic anti-corruption affairs in the IRGC. This highlights how deeply Iranian crypto corruption is embedded in the country’s intelligence and governance structures.

The Unraveling of the Scheme

Despite their efforts to cover up fraud, the scheme collapsed in March 2022, when Hajipour was caught in a sting operation. He tried to extract $10,000 from Estavi, convincing him he could purchase stolen tokens back. In reality, Hajipour himself created a fake identity to carry out fraud. When he made the payment, IRGC intelligence officers arrested him. Following his arrest, Hajipour was imprisoned in Ward 66, a special detention facility for IRGC personnel. However, records of the final sentence for him and his accomplices remain confidential.

Cryptoland’s Collapse: Thousands of Investors Suffer

The collapse of Cryptoland left 51,000 traders in financial distress. While 24,000 victims had been repaid for approximately $14 million, 25,000 remained uncompensated. Meanwhile, Sina Estavi was sentenced to 15 years in prison, along with economic penalties, and a lifetime ban on public service. However, despite being under a travel restriction, he managed to escape Iran and later appeared in a video from France, further complicating this case.

The Bigger Picture: Other Crypto Crimes in Iran

This Iran crypto scandal was not a single incident. Iranian crypto corruption has been a growing issue, with different high-profile crypto-related crimes surfacing. Recently, the Foreign Assets Control Department of the U.S appointed Behrouz Parsarad, an Iranian national, for running a darknet market facilitating $30 million in illegal narcotic sales through cryptocurrency transactions.

The Iran Crypto Scandal exposes the extent of corruption within a country’s regulatory and intelligence framework. Instead of protecting investors, officers misuse their positions for personal gain, increasing doubt in the volatile cryptocurrency market.