Senior officials of the Islamic Revolutionary Guard Corps (IRGC) have been accused of embezzling $21 million in crypto. The alleged theft happened during an investigation into crypto exchange, Cryptoland, and its CEO, Sina Estavi.
The regulatory probe began in May 2021 after Estavi was arrested on charges of disrupting Iran’s financial system. Thousands of investors claimed Cryptoland mismanaged customer funds, resulting in the devaluation of Estavi’s BRG token. Nearly six billion BRG tokens were moved from Estavi’s wallet before the public became aware.
Iranian Officials Steal $21M
IRGC officials were assigned to manage Cryptoland’s seized assets as part of the probe. Iranian media outlet Iran International reported that some high-ranking interrogators diverted the tokens into personal wallets instead of safeguarding the funds. Among the accused are senior officers in the IRGC’s economic crimes unit, Mehdi Hajipour and Mehdi Badi.
Blockchain records revealed that crypto wallets controlled by Hajipour processed over $21 million in transactions involving the BRG token. His portfolio surged from $40,000 to over $14 million within four months. The report noted that the senior officer used the funds to acquire luxury assets, including gold, high-end real estate, and vehicles.
Meanwhile, the report revealed that Hajipour and Badi were not acting alone. A few other IRGC interrogators, including Majid Jahan Parto and Majid Tabatabaei, were involved. Court documents indicate that a network of at least six officials used forged documents to legitimize the illegal transactions.
While there is limited information about the sentencing of the accused officials, part of the stolen funds was used to reimburse some investors. About 50% of the affected Cyrptoland customers have not been compensated.
Crypto Crimes Involving Government Officials
Other cases involving government officials have been brought to the forelight. A Chinese official abused his position by selling classified state secrets to an unauthorized third party. The transaction was finalized using crypto as a payment method. Another case in India revealed that a former police inspector stole about $216,000 from a group of hackers.
Meanwhile, Argentine President Javier Milei is facing serious allegations of fraud linked to his public memecoin promotion. Opposers argue that his social media endorsement of the LIBRA token misled investors and contributed to a rapid collapse in the crypto’s value. Even though he later retracted the post, many investors were financially wrecked.
