During the 2025 Israel/U.S. war against Iran, Israeli authorities, and a pro-Israeli hacking group called Predatory Sparrow, targeted financial organizations that Iranians use to move money and sidestep the U.S.-led economic blockade…Predatory Sparrow…crippled Iran’s state-owned Bank Sepah, which services Iran’s armed forces and helps them pay suppliers abroad, knocking out its online banking services and cash machines…The group also breached Nobitex, Iran’s largest cryptocurrency exchange, popular with locals for transferring money overseas. The hackers extracted about $100 million in funds and forced the platform to shut down, according to the exchange.

Iran’s government pulled the plug on much of the country’s online activities to prevent further attacks… Non-Iranian websites were blocked. Citizens were warned against using foreign phones or messaging platforms that it claimed could collect audio and location data for Israeli spies. Government officials were banned from using laptops and smartwatches.

Paranoia swept through the Iranian population as the attacks, both physical and cyber, mounted. “It’s better to cut [the internet] off. Israel can see everything,” said Mohammad Ghorbaniyan, a Tehran-based money changer whom the U.S. sanctioned several years ago for allegedly aiding Iranian hackers…Predatory Sparrow has been wreaking havoc on Iran since at least 2021. In earlier hacks, the group disabled gas-station payment systems across the country and triggered a fire at an Iranian steel plant. 

For their operation against Nobitex, the hackers managed to obtain the keys for the exchange’s cryptocurrency wallets, which were held by key personnel within the company…Predatory Sparrow then “burned” the stolen $100 million by sending the tokens to other digital wallets the group itself couldn’t access. These wallets’ addresses, which are made up of long strings of numbers and letters, contained profane phrases like “F—IRGCterrorists.”

Excerpt from Angus Berwick, How Israel-Aligned Hackers Hobbled Iran’s Financial System, WSJ, June 29, 2025