IRGC Officials Embezzle $21M in Cryptocurrency Scandal

Senior officials within Iran's Islamic Revolutionary Guard Corps (IRGC) have been implicated in a significant corruption scandal involving the embezzlement of approximately $21 million in cryptocurrency. The scandal unfolded during an investigation into Cryptoland, a digital exchange that was shut down in 2021. The case highlights a complex web of fraud and corruption within the IRGC, involving high-ranking officials who exploited their positions for personal gain.

The scheme began in May 2021 when Sina Estavi, the CEO of Cryptoland, was arrested on charges of disrupting the economic system. Despite having no formal accusers at the time of his arrest, the news of his detention triggered a wave of complaints from thousands of investors. Blockchain records reveal that just one day after Estavi's arrest, six billion BRG tokens were transferred from his crypto wallet. These tokens were later sold by IRGC officers for tens of millions of dollars, indicating a premeditated plan to exploit the situation for personal profit.

Two key figures in the operation were identified as Mehdi Hajipour and Mehdi Badi, both senior interrogators in the IRGC’s economic intelligence branch. A court-appointed expert confirmed that wallets controlled by Hajipour alone processed and sold over $21 million worth of BRG tokens. The financial transformation of Hajipour was particularly striking. Before the token theft, his assets were valued at approximately $40,000. Within just four months, his fortune had skyrocketed to over $14.2 million. Hajipour used his newly acquired wealth to purchase gold, luxury real estate, and high-end vehicles, which became key evidence in the investigation.

The scheme began to unravel in March 2022 when IRGC counterintelligence agents arrested Hajipour in a sting operation. He was caught accepting a $10,000 payment from Estavi, who believed he was buying back stolen tokens from a third party. This third party was actually a fake identity created by Hajipour himself. After his arrest, Hajipour was held in Ward 66, a special prison facility reserved for IRGC personnel. His appeal was rejected in September 2022, but the court documents do not provide complete information about the sentences for all defendants in the case.

Mehdi Badi, operating under the alias “Dr. Ebadi,” was also a central figure in the scandal. His name has appeared in many major cases labeled as IRGC economic corruption investigations. Badi is reportedly the nephew of Ali Akbar Hosseini Mehrab, a former high-ranking IRGC official. Court documents reveal that two other IRGC interrogators, Majid Jahan Parto and Majid Tabatabaei, were also involved. Four additional people assisted the group by forging documents to legitimize the transactions, indicating a deep network of corruption within the IRGC intelligence organization.

Three months after Hajipour’s arrest, there was a leadership change in the IRGC intelligence organization. Hossein Taeb was dismissed from his position as head and replaced by Mohammad Kazemi. The timing of this change suggests possible connections to the scandal. Meanwhile, Estavi was sentenced to 15 years in prison, 75 lashes, fines, and a lifetime ban from public service. He was ordered to return the embezzled funds but managed to flee the country despite a travel ban. A video later surfaced showing him in France.

Over 51,000 plaintiffs had filed complaints against Cryptoland. About half of these victims, whose losses amounted to $14 million, were repaid from Estavi’s account while he was in prison. However, around 25,000 other investors remain uncompensated. They are creditors of funds that were obtained and never returned by Hajipour, Badi, and other members of the network. With the main suspects in custody and the CEO fled, these investors face an uncertain future.

Estavi was known internationally for purchasing Twitter co-founder Jack Dorsey’s first tweet as an NFT for $2.9 million. This high-profile purchase brought attention to Cryptoland before its collapse, adding to the scale of the scandal when it unfolded. The case is part of a broader pattern of crypto-related crime involving Iranian nationals, highlighting the need for increased vigilance and regulation in the cryptocurrency sector.