From Tehran to Sanaa: How Is Iran Using Cryptocurrencies to Fund the Houthis Away from International Oversight?

Yemen Monitor / Newsroom:

A Reuters investigation has revealed that two brothers from an influential Iranian family, who are close to the new Supreme Leader Mojtaba Khamenei, control the country’s largest cryptocurrency trading platform and have turned it into a secret channel for financing Iran’s allies abroad, including the Houthi group in Yemen.

According to the report, the two brothers belong to the powerful “Kharazi” family in Iran, which has ties to Mojtaba Khamenei. They control Nobitex, the largest cryptocurrency exchange platform in the country, and have transformed it into a covert channel connecting Tehran to the global economy while circumventing international sanctions.

An analysis of blockchain data revealed that the Iranian state uses the platform to transfer funds to its allies overseas. Software firms tracked transactions through the platform involving accounts linked to the Houthi group in Yemen and other entities under Western sanctions.

Reuters stated in its investigation that the two brothers, Ali and Mohammad Kharazi, founded the platform in 2018 and used a rare family name (“Aghamir”) to conceal their identities and their prominent lineage connected to ruling circles.

The investigation also indicated that the platform carried out transactions worth tens to hundreds of millions of dollars involving sanctioned entities, most notably Iran’s Revolutionary Guard and the Central Bank.

According to the report, Nobitex has become Iran’s primary cryptocurrency provider, handling around 70% of all domestic transactions. It is used by more than 11 million people seeking to escape the inflation of the rial and the collapse of the traditional banking system.

The platform’s central role became especially evident during the recent “American-Israeli” war against Iran. While authorities cut off internet access for most citizens, Nobitex reportedly continued operating without interruption, suggesting that it was placed on a state-protected “whitelist.”

The platform’s founders belong to the Kharazi family, whose members have held senior diplomatic and religious positions. The family is also linked by marriage to the Khomeini family and to the family of the late leader Ali Khamenei, as well as his son Mojtaba, the current leader.