Iran’s Top Crypto Exchange Suffers Major Hack, Millions Lost

Iran’s largest cryptocurrency exchange has fallen victim to a devastating cyberattack, resulting in the loss of at least $90 million in digital assets. 

The breach, which targeted the platform’s hot wallet infrastructure, is among the most significant attacks on the country’s digital financial systems in recent years. 

With services suspended and investigations ongoing, millions of users have been left in uncertainty amid broader geopolitical tensions.

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$90 Million Vanishes in Coordinated Cyberattack

The crypto exchange confirmed on Wednesday that unauthorized access had been detected within its internal infrastructure, leading to the theft of funds from its hot wallet—an online storage system used to facilitate user transactions.

Blockchain analytics firm Elliptic traced the movement of the stolen assets, revealing that the attackers burned the funds by sending them to inaccessible wallets. 

This tactic, commonly used to avoid tracking and eliminate traceability, effectively removes the stolen crypto from circulation, making recovery virtually impossible.

As a result of the breach, the exchange's website and mobile app have been taken offline indefinitely. A full security audit and forensic investigation are currently underway.

Pro-Israel Hacking Group Takes Credit

The cyberattack was claimed by Predatory Sparrow, a pro-Israel hacking collective known for targeting Iranian state-linked infrastructure. 

In a post on X (formerly Twitter), the group stated that the exchange was selected for its alleged role in financing terrorism and assisting Iran in bypassing international sanctions.

This isn’t the first time Predatory Sparrow has struck major Iranian systems. Just a day prior, the same group claimed responsibility for a breach at one of Iran’s major banks, which caused widespread ATM outages across the country.

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A Cyberwar in Full Force

The timing of the attack coincides with heightened military and digital conflict between Israel and Iran. Iranian state media reported that Israel had launched a full-scale cyber offensive aimed at disrupting Iran’s online infrastructure and public services. 

These developments suggest that the digital battlefield has become a critical front in the larger geopolitical rivalry between the two nations.

Predatory Sparrow, active since 2021, has consistently executed highly targeted and destructive attacks, leading cybersecurity experts to speculate on potential state-level backing.

The Fallout for Iran’s Crypto Ecosystem

This attack delivers a severe blow to Iran’s crypto industry, which has grown in importance as a workaround to global sanctions. 

The exchange, used by over 10 million Iranians, has served as a crucial gateway for digital finance in a country isolated from much of the global banking system.

With trust now shaken and questions about cybersecurity looming, the road to recovery for Iran’s crypto ecosystem may be long and fraught with political and technical challenges.

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FAQs

1. What happened to Iran’s top crypto exchange? 

It was hacked, resulting in at least $90 million in losses from its hot wallet.

2. Who carried out the attack?

A pro-Israel hacking group called Predatory Sparrow claimed responsibility.

3. Were the stolen assets recoverable?

No. The hackers burned the funds by sending them to inaccessible wallets.

4. Is the exchange still operating?

No. Its website and app have been taken offline pending investigation.

5. Why was the exchange targeted?

The attackers claimed it supported terrorism and helped Iran evade sanctions.