Iran's Revolutionary Guard Officers Accused Of Stealing $21 Million In Crypto While Investigating A Corruption Case

Senior officers from Iran’s Revolutionary Guard have been accused of pilfering approximately $21 million in cryptocurrency while investigating a corruption case.

What Happened: The alleged theft took place during a probe into Cryptoland, a digital exchange that was shuttered following the arrest of its CEO, Sina Estavi, in May 2021, reported Iran International on Sunday. 

Blockchain records showed that six billion BRG tokens, created by Estavi, were transferred from his cryptocurrency wallet a day after his arrest, the report said. These tokens were allegedly sold off by officers of the Revolutionary Guard, generating millions for themselves.

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Two key figures, Mehdi Hajipour and Mehdi Badi, senior interrogators in the Revolutionary Guard’s economic branch, were identified by a court-appointed expert. The expert’s report confirmed that wallets controlled by Hajipour sold over $21 million worth of BRG tokens.

In March 2022, Hajipour was arrested by Revolutionary Guard counterintelligence agents in a sting operation while accepting a $10,000 payment from Estavi, who believed he was buying back the stolen tokens from a third party.

Iran’s Revolutionary Guards is a branch of the Iranian armed forces tasked with defending the regime against internal and external threats. Its media arm, Sepah News, didn’t immediately return Benzinga’s request for comment.

Why It Matters: Iran announced a cryptocurrency regulatory framework last year, aiming to nullify the crippling sanctions that have drained its economy as a result of a strained relationship with the West.

The initiative aimed to "eliminate negative impacts while leveraging positive effects" of digital currencies and align Iran’s activities with the global economy.

According to a February research report published by blockchain analysis firm Chainalysis, cryptocurrency outflows from Iranian exchanges, including Bitcoin BTC/USD, increased during moments of heightened geopolitical volatility, implying that people were utilizing digital assets as a hedge.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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