Iran’s anti-corruption efforts have taken an unexpected turn following allegations that senior members of the Islamic Revolutionary Guard Corps (IRGC) embezzled millions in digital assets during an official investigation. The case centers on the now-defunct crypto exchange, Cryptoland, and its founder, Sina Estavi, whose assets were under government seizure following his 2021 arrest.
According to court documents reviewed by Iran International, two interrogators from the IRGC’s economic intelligence unit—Mehdi Hajipour and Mehdi Badi—allegedly diverted more than $21 million worth of BRG, the native token of Cryptoland, into personal wallets during the investigation. Blockchain records show Hajipour alone processed over $21 million in BRG through wallets tied to his identity.
The operation, initially framed as part of a wider anti-corruption probe, is now facing scrutiny after it was revealed that the officers liquidated the seized tokens for personal gain. Reports also suggest that Estavi was tricked into paying $10,000 in an attempt to recover some of the assets, believing he was transacting with a neutral third party.
Details of the Alleged Misappropriation
Financial records submitted to the court revealed a dramatic increase in personal wealth linked to one of the accused officers. Before the alleged embezzlement, Mehdi Hajipour’s known assets were valued at approximately 10 billion Iranian rials (around $40,000 at the time). Within just four months, his holdings reportedly ballooned to more than 600 billion rials, with expenditures traced to real estate acquisitions, luxury vehicles, and large purchases of gold.
The case took a further turn in March 2022, when Hajipour was arrested in a sting operation after accepting a $10,000 bribe from Cryptoland CEO Sina Estavi. Estavi believed he was repurchasing stolen BRG tokens from a third-party broker—an identity investigators later confirmed had been fabricated by Hajipour himself. Following his arrest, Hajipour was reportedly held at a facility typically reserved for IRGC personnel. In September 2022, his appeal for release was denied.
According to documents reviewed by Iran International, the embezzlement scheme extended beyond Hajipour and Mehdi Badi. Two other IRGC interrogators—Majid Jahan Parto and Majid Tabatabaei—are alleged to have participated in the operation. The group also reportedly relied on forged documents to authenticate and conceal the movement of digital assets.
The report further notes that Badi, who operated under the pseudonym “Dr. Ebadi,” is related to a former high-ranking IRGC official, raising further concerns about institutional ties and possible internal protection shielding the operation from early scrutiny.
Background of the Case and Implications
The origins of this scandal trace back to the 2021 collapse of Cryptoland, once a prominent digital asset exchange in Iran. The exchange’s CEO, Sina Estavi, was arrested in May of that year on charges of large-scale financial misconduct, including the alleged misappropriation of $20 million. His high-profile arrest occurred shortly after he gained international attention for purchasing Twitter founder Jack Dorsey’s first tweet as an NFT for $2.9 million.
Following Estavi’s detention, operations at Cryptoland ceased entirely. The platform’s collapse triggered widespread fallout among domestic investors, with more than 51,000 Iranians reportedly filing complaints tied to lost funds.
In 2023, Estavi was convicted on multiple charges, including disrupting the national economy. His sentence included 15 years in prison, a fine, corporal punishment, and a lifetime prohibition from holding public office. Despite a court-imposed travel ban, he managed to flee the country. A video later surfaced placing him in France, and Iran’s judiciary confirmed that he had exited the country in direct violation of court-imposed restrictions.
While Estavi has reportedly repaid around $14 million to over 24,000 affected users, nearly half of the impacted investors remain uncompensated.
Quick Facts:
- Two IRGC officials are under investigation for allegedly embezzling more than $21 million in cryptocurrency during a corruption probe.
- The funds were taken from seized assets belonging to Cryptoland, a defunct exchange whose CEO was arrested in 2021.
- One of the accused, Mehdi Hajipour, reportedly funneled BRG tokens into personal wallets and later liquidated them.
- The case has raised concerns about corruption within Iran’s enforcement agencies and the risks tied to unregulated asset seizures.
