It has been pointed out that Novitex, a cryptocurrency exchange founded by Iran's elite 'Kharaj brothers,' is being used to transfer funds for the Islamic Revolutionary Guard Corps under US sanctions.

Reuters has reported in detail that a powerful family closely connected to Iran's new supreme leader controls Iran's largest cryptocurrency exchange and handles tens of billions of dollars worth of transactions linked to the Central Bank of Iran and Iran's military organization, the Islamic Revolutionary Guard Corps.

One of Iran's most powerful families founded its largest crypto exchange. It's used by the IRGC to move millions | Reuters

Reuters has highlighted Nobitex, a cryptocurrency exchange founded by two brothers from the Haraj family, one of Iran's most influential families. Nobitex is estimated to handle 70% of cryptocurrency transactions in Iran, and according to the company, it has 11 million users, which represents more than 10% of Iran's population.

Although Iran is subject to economic sanctions imposed by Western countries, this exchange is exempt from sanctions by the United States and its allies. As a result, Iranians, who are excluded from the international banking network and facing currency devaluation and severe inflation, are reportedly using this exchange to buy and hold cryptocurrencies.

Brothers Ali and Mohammad, the third generation of the Haraj family, built Novitex into a massive cryptocurrency exchange. However, the brothers concealed their Haraj surname within the company, and they have not used the Haraj surname then or now. The fact that Novitex is connected to the Haraj family was not widely known until Reuters conducted its investigation.

The Haraj family is known for advising Iran's supreme leaders and occupying key political, diplomatic, and religious positions. For example, the brothers' father, Ayatollah Bagher Kharrazi, was one of the founders of Hezbollah, and it is said that Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, was one of his students. Their uncle is former Iranian Foreign Minister Kamal Kharrazi, who also ran for president in 2013.

Rumors about the true identities of the Haraji brothers surfaced in 2024 when a Chinese blog reported that the brothers' father was a major shareholder of Novitex.

When Ally registered the Novitex domain in 2017, he used an email address that included the name Haraji, which was the same address used for registering the website of the religious charity headed by his father, Bager. According to the registration records, Ally was listed as the vice president of the charity.

Reuters reports that Novitex is being used by the Iranian government to send funds to allies outside the normal banking system and that it also has ties to the Islamic Revolutionary Guard Corps.

On the other hand, Novitex cited the fact that the Central Bank of Iran has regularly banned exchanges, including Novitex, from accessing the domestic banking system, and that it has faced operational restrictions including raids on its offices by security agencies, domain blocking, and closure of bank gateways, stating that 'these actions are completely contradictory to the idea that we receive any kind of government support.' It also stated that even if illegal funds had passed through the exchange, it would have been done without the approval or knowledge of management.

Reuters reported that it 'could not determine why Novitex was spared the same sanctions imposed on other major Iranian economic figures,' and quoted Democratic Senator Elizabeth Warren, who mentioned Novitex's ties to the Haraj family, as saying, 'This report is a serious warning sign. Adversaries are using digital assets as a means to replace the American-led global financial system.'