The Rise of Illegal Crypto Exchanges: Infamous Iranian Scammers Exploiting the UAE

Infamous Iranian scammers, known for their criminal records in Iran, are now operating unlicensed and unregistered crypto exchanges from Dubai. These illegal platforms, targeting Iranian citizens, are being used to draw funds and facilitate financial fraud. Operating in violation of UAE’s strict licensing and anti-money laundering (AML) regulations, their actions pose a significant threat to the region’s financial integrity.

These scammers funnel illicitly obtained funds—black money—from their unregulated crypto operations into the UAE, where they recklessly spend on luxury lifestyles, and high-profile social events. Their ostentatious displays of wealth, funded by stolen money, serve as a deceptive front to lure more victims into their fraudulent schemes.

Such activities not only exploit unsuspecting individuals but also threaten the UAE’s reputation as a global financial hub by potentially breaching anti-money laundering (AML) laws and fostering economic crimes.

From Human Trafficking to Crypto Fraud: The New Face of Infamous Scammer

Infamous scammers with documented involvement in human trafficking and crypto pump-and-dump schemes have now shifted to operating unregistered crypto exchanges in Dubai. By presenting a seemingly legitimate front, they aim to launder illicit funds through blockchain technology, disguising their fraudulent activities. These exchanges act as a cover for laundering money while evading accountability in Iran, where they are wanted by the court of justice. Their operations pose a dual threat, exploiting blockchain anonymity and undermining the UAE’s commitment to combating financial crimes and upholding international legal standards.

Khashayar Moradverdi: From Human Trafficker to Crypto Scammer

Khashayar Moradverdi (خشایار مرادوردی), also known by the alias “Adam Moradi,” is the head of this illegal operation and a key player in exploiting Dubai’s crypto market. Operating under the brand name “adam.trade” on Instagram, Moradverdi initially gained attention by selling trading courses and promoting fake tokens and coins to Iranian citizens. His operation, which began in Turkey, attracted significant interest until Iranian media activists exposed his criminal past as a former human trafficker, leading to his name becoming synonymous with deceit. After the exposure, Moradverdi swiftly shifted tactics, transitioning from fraudulent courses and token sales to running unregistered crypto exchanges, using them as a cover for money laundering operations while evading justice in Iran. Read More: (Link1),(Link2), (Link3), (Link4)

Adam Moradi is now luring people through a Telegram bot, claiming to offer free trading lessons. However, beneath this “free” facade, he is directing individuals to invest and trade on his new, unregistered crypto exchange, “thetruetrade.io”. This is just one version of his white-labeled scam platforms, designed to look legitimate but ultimately aimed at siphoning funds from unsuspecting users.

TheTrueTrade.io and Similar Exchanges: Breaches of UAE and Global Crypto Laws

These criminal crypto exchanges, operated by Adam Moradi and his network, flagrantly violates numerous laws both globally and within the UAE. By operating without proper registration or licensing, the platform breaches the UAE’s strict regulations set by the Securities and Commodities Authority (SCA) and Dubai Virtual Assets Regulatory Authority (VARA). These rules mandate that all crypto exchanges be licensed, implement robust anti-money laundering (AML) measures, and ensure consumer protection.

Internationally, the platform disregards compliance with Financial Action Task Force (FATF) Guidelines, which aim to combat money laundering and terrorism financing. Its unregulated nature exposes users to financial risks, undermines trust in legitimate crypto markets, and jeopardizes the UAE’s global reputation as a financial hub.

By enabling anonymous transactions and failing to verify user identities, TheTrueTrade.io and their other exchanges fosters an environment for financial crimes, including tax evasion, fraud, and illicit fund transfers. Authorities have a clear basis to investigate and shut down such platforms, ensuring compliance with both local laws and international standards.

VARA’s Enforcement Actions Highlight Risks for Illegal Platforms Like TheTrueTrade.io

The Dubai Virtual Assets Regulatory Authority (VARA) has demonstrated its commitment to regulating the cryptocurrency sector through decisive enforcement actions. Earlier this year, VARA fined OPNX, 10 million AED and imposed individual penalties on its co-founders for operating without proper registration under the Virtual Assets and Related Activities Regulations.

This regulatory clarity, including mandatory licensing and stringent anti-financial crime measures, underscores the UAE’s determination to combat illicit activities. Platforms like TheTrueTrade.io, which operate without registration or adherence to these laws, directly violate these regulations and risk facing similar or even harsher penalties.

This connection strengthens the case against TheTrueTrade.io, aligning it with Dubai’s broader efforts to remove bad actors and enhance its reputation as a trusted financial hub.

Radin Jahromi and His Copycat Exchange

Radin Jahromi, an alias used by an individual whose true identity remains unknown, mirrors Adam Moradi’s fraudulent tactics. Using the same “free lessons” approach, Jahromi preys on unsuspecting individuals, primarily through Telegram bots that eventually direct users to his unregistered crypto exchange.(Telegram Posts)

The platform Jahromi promotes (trade2rich.com) operates under a different label but uses the same white-labeled infrastructure as TheTrueTrade.io, raising concerns about a coordinated network of fraudulent exchanges. By leveraging the guise of education and mentorship, he builds trust with his victims, only to exploit them through illegal trading platforms that evade UAE licensing and regulatory requirements.

Jahromi’s operations not only violate Dubai’s Virtual Assets Regulations but also contribute to an alarming trend of unregistered exchanges targeting vulnerable communities. His tactics exemplify the need for stringent enforcement to protect consumers and preserve the integrity of the UAE’s financial ecosystem.

CryptoSaba: Instagram Influencer Fueling Illegal Exchange Operations

CryptoSaba, an Instagram influencer, plays a significant role in the network of unregistered crypto exchanges. Using a similar tactic as Adam Moradi and Radin Jahromi, she offers “free trading education” to lure followers into her Telegram bot. Ultimately, this funnel leads users to the illegal exchange 4trade.vip, which operates with the same white-labeled infrastructure as the others in this scam network.

Her social media presence and educational facade create an illusion of legitimacy, making her a key player in promoting these unlicensed platforms. By leveraging her online influence, CryptoSaba exploits unsuspecting individuals while violating the several global rules like UAE’s Virtual Assets Regulations, including mandatory licensing and compliance with anti-money laundering (AML) laws.

This coordinated effort among influencers and platforms highlights the urgency for authorities to take action against these interconnected networks that exploit social trust to perpetuate financial crimes.

A Broader Network of Deception: Connections to Pouyan Mokhtari?

The operations of these illegal exchanges raise suspicions of ties to notorious scammer Pouyan Mokhtari, who is under an Interpol red notice for money laundering. Mokhtari, known for operating under fake identities, is reportedly moving freely in Dubai despite his criminal history. While no direct evidence links him to these specific scams, the similarities in tactics and operational patterns suggest the possibility of his involvement or influence.

These operations may serve as a front for broader money-laundering schemes, leveraging Dubai’s financial infrastructure to target victims and obscure the origins of illicit funds. Authorities must remain vigilant in investigating potential connections to Mokhtari and his network, ensuring the UAE remains steadfast in its commitment to combating financial crime and safeguarding its reputation as a global financial hub.

The systemic nature of these scams underscores the urgent need for collaboration between regulatory bodies, law enforcement, and the public to dismantle such networks and hold perpetrators accountable.