With flashy celebrity ads and promises of deep discounts, a shop in Iran’s capital had offered consumers in the Islamic Republic one of the hottest products in the country — an iPhone that came out in 2021.

But instead of getting their hands on the handsets, police and prosecutors in Iran allege customers found themselves ensnared by a business owner running a multimillion-dollar Ponzi scheme.

Yet the controversy surrounding the Kourosh, or “Son of the Sun,” Company extends far beyond just the alleged scheme.

It’s a sign of the economic woes plaguing Iran after decades of Western sanctions, now accelerating as Tehran rapidly advances its nuclear program, helps arm Russia in Moscow’s war on Ukraine, steps up support for proxy militias in the Middle East and violently cracks down on dissent ahead of parliamentary elections on Friday.