Iranian Officials Embezzle $21 Million in Crypto During Corruption Investigation

Iranian Officials Embezzle $21 Million in Crypto During Corruption Investigation

TLDR

• IRGC intelligence officers stole $21 million in crypto while investigating Cryptoland exchange and its CEO Sina Estavi
• Mehdi Hajipour and Mehdi Badi, senior interrogators, were key figures in the theft, moving tokens from seized wallets
• Hajipour was caught in a sting operation after tricking Estavi into paying $10,000 to “buy back” stolen tokens
• Estavi was sentenced to 15 years but fled Iran; 24,000 investors were repaid $14 million while 25,000 remain uncompensated
• The scheme included at least four IRGC interrogators and others who forged documents to legitimize transactions

Senior officers from Iran’s Islamic Revolutionary Guard Corps (IRGC) intelligence organization allegedly stole $21 million in cryptocurrency while conducting an investigation into the Cryptoland exchange.

The scandal has exposed how high-ranking officials abused their power during what was meant to be an anti-corruption probe.

The case centers on Cryptoland and its CEO Sina Estavi, who was arrested in May 2021 on charges of “disrupting the economic system.” Estavi had gained international attention earlier that year for purchasing Twitter co-founder Jack Dorsey’s first tweet as an NFT for $2.9 million.

Court documents reveal that just one day after Estavi’s arrest, six billion BRG tokens (Cryptoland’s native cryptocurrency) were moved from his wallet. This transfer happened before the public knew about any investigation.

These tokens were then sold by IRGC officers for personal profit. A court-appointed expert identified two key figures behind the scheme: Mehdi Hajipour and Mehdi Badi, both senior interrogators in the IRGC’s economic intelligence branch.

Blockchain evidence shows that wallets controlled by Hajipour alone processed over $21 million worth of BRG tokens. Before this scheme, Hajipour’s total assets were valued at approximately $40,000 (10 billion rials).

Gold, Real Estate & High-End Vehicles

Within just four months, his wealth exploded to over $14.2 million (600 billion rials). He reportedly used this money to buy gold, luxury real estate, and high-end vehicles.

Badi operated under the alias “Dr. Ebadi” and is the nephew of Ali Akbar Hosseini Mehrab. Mehrab previously served as the Deputy for Economic Anti-Corruption Affairs at the IRGC intelligence organization and was later appointed governor of Khuzestan province under President Ebrahim Raisi’s administration.

The scheme didn’t stop with these two men. Court documents indicate that at least two more IRGC interrogators—Majid Jahan Parto and Majid Tabatabaei—were involved in the corruption network.

Four additional people reportedly helped by forging documents to make the transactions appear legitimate. This group of officials used their positions to carry out one of Iran’s most brazen crypto thefts.

In March 2022, Hajipour’s scheme began to unravel. IRGC counterintelligence agents arrested him in a sting operation after he accepted a $10,000 payment from Estavi.

Estavi had been tricked into believing he was buying back stolen tokens from a third party. In reality, this was a fake identity Hajipour himself had created to extract more money from the Cryptoland CEO.

Following his arrest, Hajipour was held in Ward 66, a prison facility reserved for detained IRGC personnel. His appeal was rejected in September 2022, but little information is available about the final sentences for him or the other defendants.

Three months after Hajipour’s arrest, there was a leadership change at the IRGC intelligence organization. Hossein Taeb was dismissed from his position as head of the organization and replaced by Mohammad Kazemi.

Meanwhile, Estavi faced severe penalties. He was sentenced to 15 years in prison, 75 lashes, fines, and received a lifetime ban from public service.

Despite a travel ban, Estavi managed to flee Iran. A video later surfaced showing him in France, and Iran’s judiciary confirmed he had escaped “in violation of legal prohibitions.”

The collapse of Cryptoland left thousands of investors in financial ruin. Court records show that over 51,000 Iranians filed complaints after losing money in the exchange.

While in prison, Estavi managed to repay approximately $14 million to 24,000 users from his accounts. However, around 25,000 investors remain uncompensated for funds that were taken by Hajipour, Badi, and their network.

This case coincides with other crypto-related crimes involving Iranian nationals. Recently, the U.S. Office of Foreign Assets Control sanctioned Behrouz Parsarad, an Iran-based operator of the Nemesis darknet marketplace.

Parsarad allegedly controlled the site’s crypto wallets, oversaw nearly $30 million in narcotics sales, and took a percentage of every transaction on the platform.

The post Iranian Officials Embezzle $21 Million in Crypto During Corruption Investigation appeared first on CoinCentral.