A Reuters investigation says Nobitex, described as Iran’s largest crypto exchange, was founded by Ali and Mohammad Kharrazi, who reportedly used the surname Aghamir to mask family ties. Reuters reported Nobitex has over 11 million users, and onchain firms flagged $22 million to $366 million in transactions linked to sanctioned entities, which the exchange disputes.

Reports say Iran's largest crypto exchange Nobitex was founded by Ali and Mohammad Kharrazi, linked to a family tied to Iran's political leadership. The platform reportedly has over 11 million users, stayed active during conflict and internet outages, and saw trading volume above $100 million. Onchain firms also flagged $22M to $366M in flows tied to sanctioned entities, which Nobitex disputes.

May 3 — A Reuters investigation says Iran's largest cryptocurrency exchange, Nobitex, was founded by brothers Ali and Mohammad Kharrazi, who allegedly used the alias "Aghamir" to register the company and conduct business to downplay ties to the influential Kharrazi family. Reuters reported the Kharrazi family has long-standing links to Iran's Supreme Leader establishment, with connections to both Ayatollah Ali Khamenei and his potential successor, Mojtaba Khamenei. The brothers' grandfather served in the Assembly of Experts, the body that appoints the Supreme Leader, and was described as Mojtaba's mentor. Their father was said to have helped establish the Iranian political organization Hezbollah and assisted in the creation of the Islamic Revolutionary Guard Corps. Nobitex reportedly has more than 11 million users and continued operating during nationwide internet shutdowns and wartime conditions in Iran. Analysts cited by Reuters estimated the platform processed more than $100 million in crypto transactions during the conflict, with a sizable share moving overseas. Blockchain analytics firms said Nobitex handled some transactions involving sanctioned entities, though estimates differ sharply. Elliptic put suspicious flows at about $366 million, while Chainalysis estimated roughly $68 million. Reuters also said wallet addresses linked to Iran's central bank transferred hundreds of millions of dollars in crypto assets to Nobitex in 2025, a pattern believed to align with Iran's efforts to bypass financial sanctions.

PaperImperium, who leads MegaETH, said in an X court filing that the U.S. District Court for the Southern District of New York has issued an injunction barring Arbitrum DAO from moving roughly $71 million worth of ETH that had been frozen following the KelpDAO hack. According to the filing, the plaintiff is seeking to tap the frozen assets to satisfy outstanding judgments tied to allegations of North Korea's long-running involvement in terrorism, kidnappings and related matters. The plaintiff also requested alternative service and is treating Arbitrum DAO as a liable "partnership." Court materials describe Arbitrum DAO as having a Security Council governed by ARB holders with emergency powers. The documents warn that council members who decline to comply could face legal exposure, including potential contempt of court. Market participants are watching the case as a possible precedent for U.S. courts directly constraining DAO governance, underscoring mounting legal and compliance pressure on DeFi protocols under existing frameworks.

A federal judge in the U.S. District Court for the Southern District of New York has issued an injunction preventing Arbitrum DAO from transferring roughly $71 million worth of ETH that was previously frozen in connection with the KelpDAO hack, according to court filings. Plaintiffs say they intend to use the frozen assets to satisfy unpaid judgments stemming from North Korea's long-running acts of terrorism, kidnappings and other alleged offenses. The filings show the plaintiffs requested permission to serve Arbitrum DAO through alternative means and argued the DAO should be treated as a liable "partnership." The court also pointed to Arbitrum DAO's Security Council, which is governed by ARB token holders and can take action in emergency situations. The judge noted that individuals who decline to comply with the order could face legal repercussions, including contempt of court. Market observers see the dispute as a potential milestone for DeFi, raising the prospect that U.S. courts may directly constrain DAO governance and intensifying the regulatory and compliance scrutiny facing protocols under existing legal frameworks.

A federal court in Manhattan has issued an injunction directing Arbitrum DAO not to move roughly $71 million worth of ETH that was frozen after the KelpDAO hack, according to filings in the U.S. District Court for the Southern District of New York dated May 3. The plaintiffs are seeking to use the frozen crypto to satisfy unpaid judgments stemming from what the filings describe as North Korea's long-running involvement in terrorism, kidnappings and related misconduct. Court papers show the plaintiffs have asked for permission to use substituted service to notify Arbitrum DAO and are treating the DAO as a liable "partnership." The court also pointed to Arbitrum's Security Council, which is governed by ARB holders and can act in emergencies, warning that members who refuse to cooperate could face legal consequences, including contempt of court. Market participants say the dispute could become a landmark test of how U.S. courts may apply traditional legal tools to DAO governance, underscoring intensifying compliance pressure on DeFi protocols as they intersect with real-world legal systems.

New York Attorney General Letitia James said crypto platform Uphold has been ordered to pay $5 million in restitution to users affected by its promotion of CredEarn, an allegedly fraudulent crypto investment product. According to the investigation, Uphold did not disclose that CredEarn's advertised returns were generated from high-risk microloans to low-income gamers in China, and it presented insurance-like protections that investigators found did not exist. The AG's office also said Uphold lacked required registrations as a broker-dealer or commodity broker-dealer. After Cred filed for bankruptcy in 2020, many customers incurred losses. Under the settlement, Uphold will pay $5 million and return an additional $545,000 recovered through Cred's bankruptcy proceedings. (ny.gov)

Nick Timiraos, the Fed watcher known for close sourcing, reports that internal debate over the policy path has hit an inflection point. The discussion has shifted from when rate cuts will start to what conditions could force the Federal Reserve to hike again. The statement following the latest meeting reflected a notable change in tone. Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack, and Minneapolis Fed President Neel Kashkari objected to keeping language indicating that "the next step will most likely be an interest rate cut," a rare public split for the institution. Fed Chair Jerome Powell, nearing the end of his term, said post-meeting that the committee held "intense discussions." He noted the guidance was not fully removed for procedural reasons, but he made clear the Fed has moved from a dovish posture toward a more neutral stance, calling the dissenters' arguments "completely valid." The overall message points to a retreat from cut signaling in favor of a wait-and-see approach. The catalyst is an energy-market shock. Supply disruptions tied to the de facto closure of the Strait of Hormuz have raised concerns that elevated energy prices could persist. Analysts say the risk is not merely a temporary spike but a structural threat that could lift broader inflation expectations. Kashkari highlighted the scenario in a recent speech, arguing that if the strait does not reopen soon, rate hikes could return to the agenda. He acknowledged the risk of weakening the labor market, but said inflation control would remain the priority. Former Fed economist William English criticized the current stance, warning that holding rates steady as inflation rises amounts to "passive easing" and is unlikely to be sustainable. The last comparable challenge to the statement language came in September 2020. The debate is expected to intensify under Kevin Warsh, who is widely anticipated to take over as Fed chair in mid-May. The first Fed meeting after Powell's term ends is likely to be a key test of the next direction for monetary policy. This is not investment advice.

New York Attorney General Letitia James said more than $5 million in restitution has been recovered from crypto platform Uphold, citing allegations that the company misled consumers while promoting fraudulent investment schemes. The attorney general's office said that from January 2019 to October 2020, Uphold marketed CredEarn through its platform and mobile app as a safe, dependable savings product with attractive annual yields. Regulators allege the company did not adequately disclose the risks and touted protections that did not exist at the time, noting the industry offered no insurance that would shield retail investors from digital-asset losses. The settlement also addresses compliance issues, including allegations that Uphold failed to register as a broker-dealer or a commodity futures merchant. According to the announcement, Cred began suffering significant losses in March 2020 due to high-risk lending and filed for bankruptcy in November 2020, leaving thousands of Uphold users worldwide with financial losses. Under the agreement, Uphold will pay $5 million directly to affected users, an amount the state said is more than five times the fees the platform collected. Any proceeds Uphold later recovers from Cred's bankruptcy proceedings will also be passed on to impacted users. (Source: PANews; via ME News)