Will Identity Verification Safeguards Prevent Further Losses for Iranian Crypto Investors?
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Will Identity Verification Safeguards Prevent Further Losses for Iranian Crypto Investors?

As Nobitex enforces strict identity checks after a $90 million hack, Iranian crypto investors wonder if new safeguards will be enough to stop future losses and restore confidence.

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By Elijah Phillips

2 min read

Image Credit: Nobitex
Image Credit: Nobitex

In the aftermath of a $90 million cyberattack, Iranian crypto exchange Nobitex is rolling out enhanced identity verification protocols. Only users who complete these checks will regain access to their wallets, with spot wallets being prioritized. This move is part of a broader effort to restore trust and prevent further losses among investors.

Are Identity Verification Measures a Silver Bullet for Exchange Security

Identity verification is widely regarded as a critical layer in protecting users from unauthorized access and fraudulent activity. By restricting wallet access to verified individuals, Nobitex aims to reduce the risk of repeat breaches and ensure that only legitimate users can interact with their funds.

However, experts caution that while identity checks are essential, they are not a standalone solution to complex cybersecurity threats.

Did you know?
Infostealer malware, which targets employee credentials and internal systems, was identified as a key factor in the Nobitex breach.

Why Did Nobitex’s Previous Security Measures Fail to Prevent the Breach

The June 2025 attack on Nobitex, attributed to pro-Israel hackers Gonjeshke Darande, exploited vulnerabilities in internal systems, including compromised employee credentials obtained via infostealer malware.

The hackers not only stole assets but also burned $90 million worth of cryptocurrencies and released the exchange’s source code.

This incident exposed weaknesses in Nobitex’s security infrastructure and highlighted the need for multi-layered defenses beyond user verification.

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How Are Iranian Authorities Responding to the Nobitex Incident

In response to the breach, Iranian regulators have imposed new restrictions on domestic crypto exchanges, limiting operational hours to between 10 a.m. and 8 p.m. to enhance oversight and reduce exposure to cyber threats.

These measures, combined with mandatory identity verification, reflect a concerted effort to protect investors and stabilize the crypto sector.

What Are the Broader Implications for Crypto Investors in Iran

The Nobitex hack and subsequent policy changes underscore the challenges of securing digital assets in a volatile geopolitical environment. While identity verification and regulatory oversight may help restore some confidence, investors remain wary of systemic vulnerabilities and the potential for future attacks.

The incident has also reignited debates about the balance between security, privacy, and user experience in the crypto industry.

Do you believe identity verification will be enough to prevent future crypto losses in Iran?

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