Since Nobitex was founded by the two brothers under an alternative family name, it has processed transactions linked to sanctioned groups, including Iran’s central bank and the Islamic Revolutionary Guard Corps, a Reuters investigation has found.

The two are members of the Kharrazi family, one of the most influential dynasties in the Islamic Republic.

Corporate records show that when the exchange started, the brothers were listed under a surname rarely used by members of the family.

Nobitex claims 11 million users, more than 10% of Iran’s population.

Locked out of international banking and facing a devalued rial and inflation, ordinary Iranians use the exchange to buy and hold cryptocurrency.

While Iran is subject to Western economic sanctions, the exchange has avoided being designated by the United States and its allies.

Nobitex serves as a bridge to global crypto markets and a central node in a parallel financial system used to move funds beyond the reach of sanctions, Reuters found.

It’s used by the Iranian state to route money to allies outside the conventional banking system, according to blockchain analysis and interviews with investigators.

In statements, Nobitex denied having direct government connections or assisting the state, and said any illicit funds moving through the exchange did so without management approval or awareness.

The company said it is a private and independent business with no relationship with government bodies.

The exchange has continued processing transactions during the war, even during internet shutdowns and power outages, according to blockchain analysis firms.

Analysts say the concern is that since Nobitex has significant activity from ordinary users, it is difficult to separate state-linked transactions from regular usage.

Estimates of illicit transactions vary, but even higher estimates represent a small fraction of total volume processed by the exchange.