Pro-Israel Hackers Destroy $90 Million in Iran Crypto Exchange Breach
Pro-Israel Hackers Destroy $90 Million In a dramatic escalation of the ongoing cyber conflict in the Middle East, a group of pro-Israel hackers has reportedly destroyed nearly $90 million in assets belonging to Iranian crypto exchanges. The breach, which occurred in June 2025, has shocked the global cryptocurrency community and sparked new concerns over the weaponization of digital assets in geopolitical conflict.
This incident marks one of the largest politically-motivated cyberattacks ever recorded in the blockchain space and highlights the growing risks to digital finance infrastructure amid rising international tensions. In this article, we’ll explore the background, execution, and implications of the attack, and what it means for cryptocurrency security, Iran’s digital economy, and the future of cyberwarfare. Israel Hackers Destroy $90 Million
What Happened: The $90 Million Crypto Breach
On June 17, 2025, reports began circulating on crypto-focused Telegram channels and Iranian social media about major outages on several local crypto platforms. Within 24 hours, security firms confirmed that multiple Iran-based cryptocurrency exchanges had been targeted in a coordinated cyberattack.
A pro-Israel hacking collective known as “Predatory Sparrow” claimed responsibility. The group released a public statement through encrypted channels, claiming they had successfully breached wallets, servers, and private keys belonging to Iranian digital currency businesses.
“We have neutralized over $90 million in digital funds used to fund terror and cyber-espionage,” said the hackers in a statement. “We did not steal — we destroyed.”
Security analysts later verified that most of the assets were either burned (sent to unspendable addresses) or frozen via smart contract exploits</strong>, effectively removing them from circulation.
Who Are Predatory Sparrow?
Predatory Sparrow is a well-known cyber group previously linked to attacks on Iranian infrastructure, including oil facilities and government servers. Believed to have ties with Israeli intelligence agencies, the group operates with high-level expertise, focusing on non-financial gain attacks</strong> designed to disable, destroy, or expose adversarial systems. Their operations differ from traditional cybercriminal groups, as they are motivated by national security objectives rather than profit.
In the case of the Iran crypto attack, it’s believed the group sought to:
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Disrupt funding for Iranian government-aligned institutions.
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Undermine Iran’s use of crypto to bypass sanctions.
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Send a message amid escalating Middle East tensions.
Iran’s Crypto Economy: A Sanctions Workaround
Iran has increasingly turned to cr
yptocurrencies as a tool to bypass U.S. sanctions, especially for international trade, imports, and cross-border settlements. The Central Bank of Iran (CBI) has been cautiously supportive of crypto mining and select crypto exchanges under strict regulation.
According to Chainalysis, Iran ranks among the top 20 nations for crypto adoption, with millions of Iranians relying on digital assets due to:
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Limited access to SWIFT and global banking syste
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Hyperinflation of the Iranian Rial
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High demand for U.S. Dollar-backed stablecoins like USDT
The recent attack, therefore, represents not just a blow to a few platforms, but a direct strike against Iran’s parallel fi
nancial system</strong>.
Implications for the Global Crypto Community
This hack is not just a regional story—it has global ramifications, especially in terms of crypto security and geopolitical risk.
1. Cyberwarfare Meets Crypto
This attack signals a shift in cyberwarfare strategy: destruction, not theft, as a goal. Rather than stealing coins to fund operations, the attackers eliminated value—effectively turning crypto into a digital battlefield.
2. Targeting of Civil Infrastructure
This raises ethical questions about collateral damage in cyberwar and the blurred lines between state and civilian targets in the blockchain world.
3. Investor Confidence and Risk Premium
Exchanges in high-conflict zones may now face increased scrutiny from users, insurers, and regulators. Platforms may be forced to enhance security protocols, introduce geopolitical risk disclosures, and even charge premiums to account for elevated threat levels.
Iran’s Response: Political and Technical Fallout
The Iranian government has condemned the attack, labeling it an act of “financial terrorism” and promising retaliation. Authorities have launched a full-scale investigation and temporarily suspended all crypto exchange operations pending review.
Protests have reportedly erupted outside a major Tehran-based exchange, demanding refunds and government action.
In the technical community, Iranian blockchain developers are calling for:
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Migration to multi-signature wallets
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Stronger KYC-based user segmentation
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>Redundant infrastructure to defend against coordinated attacks
ata-start=”6166″ data-end=”6227″>International Reaction: Silence, Support, and Concern
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Israel</strong> has neither confirmed nor denied involvement, consistent with its usual cyberwarfare posture.
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U.S. officials have remained silent but some policymakers are privately calling it “a necessary disruption to a rogue state’s shadow economy.”
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Human rights groups have expressed concern that such cyberattacks set a dangerous precedent, potentially justifying reciprocal attacks on civilian digital assets elsewhere.</p>
Meanwhile, cybersecurity firms like Kaspersky, <strong data-start=”6753″ data-end=”6768″>CrowdStrike, and Elliptic are analyzing the breach for patterns and vulnerabilities that could appear in other jurisdictions.
What’s Next? Increased Security and Tensions
With the line between cyberwar and financial disruption now effectively erased, crypto exchanges worldwide—especially in high-risk regions—may need to adopt military-grade digital defenses.
We may also see:
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Insurance companies re-evaluating crypto policies in conflict zones.
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Decentralized exchanges (DEXs) gaining favor as they reduce centralized attack surfaces.
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<strong data-start=”7332″ data-end=”7369″>Greater international cooperation on cyber defense standards for blockchain infrastructure.
ta-start=”7429″ data-end=”7614″>For Iran, rebuilding trust in its crypto sector will be challenging. Analysts predict a sharp drop in local crypto trading volume and a potential crackdown on independent platforms.