Major Crypto Scandal Rocking Iran: IRGC Officers Embezzle $21 Million
Date: March 31, 2025
By News Room
Iran’s cryptocurrency market is reeling from a staggering $21 million fraud case involving high-ranking officers of the Islamic Revolutionary Guard Corps (IRGC). During an investigation that was ostensibly aimed at combating corruption in the cryptocurrency realm, these officers allegedly embezzled substantial funds, prompting serious concerns about the integrity of regulatory actions within the country.
Background of the Investigation
The fraudulent activities surfaced following the arrest of Sina Estavi, CEO of Cryptoland, in 2021. Estavi was taken into custody for reportedly "disrupting the economic system." What began as an effort to investigate financial misconduct has since taken a dark turn, with the investigators themselves transforming into perpetrators of the crime.
How the Theft Unfolded
Just one day after Estavi’s arrest, six billion BRG tokens—Cryptoland’s native cryptocurrency—were transferred out of his wallet before the public became aware of the situation. Subsequently, IRGC officers sold these tokens for significant profits. Blockchain investigations revealed that over $21 million worth of BRG tokens had traversed wallets associated with the IRGC intelligence officials involved.
The scheme primarily involved senior interrogators Mehdi Hajipour and Mehdi Badi, who worked within the IRGC’s economic intelligence unit. Notably, Hajipour’s financial status, previously valued at approximately $40,000, inflated to an astounding $14.2 million within just four months. This sudden wealth accumulation prompted the emergence of luxury purchases, including gold, upscale real estate, and high-end vehicles—all acquired with misappropriated funds.
A Network of Corruption
The Iran Crypto Scandal extends beyond the two main actors. Four additional IRGC officers participated in the scheme: Majid Jahan Parto and Majid Tabatabaei engaged in laundering operations, while others falsified documents to facilitate the illicit transactions. Badi maintained connections with influential IRGC figures, such as Ali Akbar Hosseini Mehrab, the former deputy for economic anti-corruption affairs, highlighting the extensive web of corruption woven through the nation’s intelligence and governance structures.
Collapse of the Scheme
Despite attempts to conceal their fraud, the scheme unraveled in March 2022 when Hajipour was ensnared in a sting operation after trying to extort $10,000 from Estavi by claiming he could buy back the stolen tokens. He fabricated a false identity for these illicit dealings. His arrest followed shortly after the transaction attempt, landing him in Ward 66, a special IRGC detention facility. However, the records detailing the final sentences for Hajipour and his accomplices remain classified.
Impact on Investors
The fallout from Cryptoland’s collapse left approximately 51,000 investors in financial turmoil. While around 24,000 victims were reimbursed for about $14 million, 25,000 investors remain unable to recoup their losses. As for Estavi, he was sentenced to 15 years in prison, alongside economic fines and a lifetime ban from public service. Intriguingly, despite being under travel restrictions, he managed to flee Iran, appearing later in a video from France, further complicating the legal proceedings surrounding this case.
Broader Implications of Crypto Corruption in Iran
The Iranian crypto scandal is not an isolated incident. It emphasizes the growing trend of corruption linked to cryptocurrency within the nation. Recently, the U.S. Department of Foreign Assets Control appointed Iranian national Behrouz Parsarad for his involvement in a darknet market that facilitated $30 million in illegal narcotic sales through cryptocurrency transactions.
This scandal is a stark reminder of the fragility of investor security within the cryptocurrency sector, particularly when those in positions of authority exploit their roles for personal gain. As Iran’s regulatory and intelligence frameworks become increasingly intertwined with corruption, skepticism regarding the safety of investing in cryptocurrencies continues to rise.
CoinfoMania provides continuous coverage of developments in the cryptocurrency market, offering insights and analysis through a dedicated team of journalists.
Share this article:
