Nobitex Restores User Access After $90 Million Hack

Nobitex, Iran's largest cryptocurrency exchange, has begun a phased restoration of user wallet access following a cyberattack that resulted in the loss of approximately $90 million in digital currencies. The hack, attributed to the anti-Iranian hacktivist collective Gonjeshke Darande, targeted various cryptocurrencies including Bitcoin and Dogecoin. The incident occurred amidst heightened tensions between Iran and Israel, with the hackers allegedly motivated by claims that Nobitex was aiding the Iranian government in evading U.S. sanctions and financing terror activities.

In response to the breach, Nobitex has implemented stringent security measures, including mandatory identity verification for wallet access. This process, which began two days prior, is crucial for unlocking user accounts and ensuring the security of the platform. The exchange is prioritizing spot wallets, with other wallet types to be accessible once full verification is completed. Users are advised to exercise patience, as the information will be released in phases to confirm the security of all details.

The restoration process is expected to be completed by mid-week, although delays may occur due to additional security checks. Nobitex is also preparing to resume withdrawal, deposit, and trading services for verified users, with these functions returning in steps to minimize disruptions. Users are cautioned not to use their old wallet addresses, as the platform has undergone a full system migration, rendering old addresses invalid. Any cryptocurrency sent to these addresses could be permanently lost.

The cyberattack has had a profound impact on Iran's digital asset market. Following the incident, Iran issued an emergency crypto exchange curfew, restricting trading hours and imposing stricter regulations to prevent similar occurrences. New rules include daily withdrawal caps, enhanced Know Your Customer (KYC) requirements, and routine audits for all exchanges. These measures aim to bolster the security and integrity of the cryptocurrency ecosystem in Iran.

Nobitex plays a pivotal role in Iran's crypto economy, serving over 10 million users and processing more than $11 billion in cryptocurrency transactions. The platform is often used by citizens to send funds abroad, combat inflation, and circumvent financial sanctions. The exchange's downtime has left many users uncertain about the safety of their funds, with the stolen assets declared unrecoverable. Nobitex has moved the remaining assets to cold storage and activated a reserve fund to cover potential losses.

As of now, wallet balances can only be viewed by verified users, and full trading support has yet to be restored. Nobitex has not clarified whether it will fully reimburse affected users or disclosed the extent of user data compromised during the hack. The exchange is gradually resuming operations, but the damage from the cyberattack has already been significant. The platform's future steps and user support measures remain to be seen as it navigates the aftermath of this high-profile incident.