Nobitex Restores Services After $100 Million Hack

Iran-based crypto exchange Nobitex has initiated the gradual restoration of its services following a significant security breach that resulted in the loss of $100 million. The hack, which occurred earlier this month, was reportedly carried out by a pro-Israel cyber group known as Gonjeshke Darande. This group claimed responsibility for the attack, suggesting that it was politically motivated due to the ongoing tensions between Iran and Israel.

In a recent post, Nobitex announced that only users who have verified their identity will have access to the platform and their funds. The exchange prioritized spot exchange users, allowing them to regain access first. However, withdrawal, deposit, and trading services remain disabled on the platform. Initially, Nobitex had planned to enable withdrawals, but the timeline for this has been subject to change.

Nobitex has also warned its users to avoid using old wallet addresses, as the wallet system has undergone migration. Any deposits made to the previous addresses may result in the loss of funds. This precautionary measure is aimed at protecting users from potential further losses due to the security breach.

The hacking group Gonjeshke Darande not only breached the platform but also burned $90 million worth of assets. They released what they claimed to be the full source code of the exchange, further exposing the vulnerabilities of the platform. The group targeted Nobitex due to its alleged ties to the Iranian government and its support for malicious actors. However, Nobitex's chief executive, Amir Rad, denied these claims, stating that the exchange is a private company and has no links to the Iranian government.

According to the hacking group, Nobitex was targeted because of its ties to the Iranian government and because it funds malicious actors. Research by on-chain analytics firm tied Nobitex to a “range of illicit actors,” which include IRGC-affiliated ransomware operators and sanctioned Russian crypto exchanges.

Nobitex’s chief executive, Amir Rad, said the exchange’s own investigation into the breach showed the hack was supported by Israel’s government. Rad also denied claims that the platform has links to the Iranian government, adding that Nobitex is a private company.

The hack has raised concerns about the security of crypto exchanges and the potential for politically motivated cyber attacks. The incident highlights the need for enhanced security measures and vigilance in the crypto industry. As Nobitex continues to restore its services, users are advised to follow the exchange's guidelines to protect their funds and ensure a smooth transition back to normal operations.