Israel-Iran Cyber War Erupts as Hackers Hit Top Iranian Crypto Exchange Nobitex

The ongoing war between Israel and Iran took a crypto dimension after an Iran-based crypto exchange, Nobitex, came under attack, losing $73 million to a hot wallet exploit. A pro-Israeli hacktivist group, “Gonjeshke Darande” (Predatory Sparrow), has claimed responsibility, framing the attack as a direct strike against the Iranian regime’s financial apparatus.

Although the crypto exchange assured users of their funds’ safety, it has halted operations, and the website and app have stopped working.

Nobitex, Iran’s largest cryptocurrency exchange, acknowledged the exploit after its team detected signs of unauthorized access on the platform.

Despite responding immediately, the hacker had already moved about $73 million from the crypto exchange, forcing Nobitex to initiate a review of its security systems. The crypto exchange claimed the exploit did not affect users’ funds. However, it promised to take full responsibility and compensate for damages through insurance and Nobitex resources.

Adding a sharp political dimension to the event, Predatory Sparrow publicly claimed responsibility for the attack on Nobitex. The group, believed by security experts to have links to Israeli military intelligence, accused Nobitex of being at the heart of the Iranian regime’s efforts to finance terror worldwide. Gonjeshke Darande promised to release Nobitex’s source code and internal information in 24 hours.

The pro-Israel hacker group gave further reasons for its attack on Nobitex, citing the crypto exchange’s non-compliance with sanctions and how it publicly instructs users on using its infrastructure to bypass the same. According to Gonjeshke Darande, the Iranian regime considers working at Nobitex valid military service because of the crypto exchange’s significance to the government’s efforts.

Notably, the latest development highlights cryptocurrency’s increasing importance to national issues. The technology’s characteristics enable efficient and instant cross-border transactions, which nations and warring parties explore to pay for weapon purchases, logistics, and other services.

However, Gonjeshke Darande’s allegations highlight the potential risks associated with the technology, mainly when used for negative reasons. Nonetheless, their actions reveal a new dimension in global warfare, with crypto hackers playing crucial roles in Israel’s defense system.