Representations of cryptocurrency Binance are seen in front of a displayed Iranian flag.
US investigators are examining whether certain cryptocurrency platforms have facilitated Iranian officials in circumventing international sanctions, amid a surge in digital currency activity across the Islamic Republic.
According to estimates from TRM Labs and Chainalysis, cryptocurrency transactions in Iran reached between $8 billion and $10 billion last year, driven by both state-linked groups and individual investors turning to digital assets as a means of preserving value and transferring funds.
Global Head of Policy at TRM Labs, a US-based blockchain analytics firm, Ari Redbord said the US Treasury Department is investigating whether cryptocurrency platforms enabled government-affiliated entities to evade sanctions in efforts to move funds abroad, acquire hard currency or purchase goods. Redbord noted he was directly aware of Treasury’s concerns but did not identify the specific platforms under scrutiny.
In September, the Treasury had issued a statement targeting “shadow banking networks” that assist Iran, including banks allegedly using cryptocurrencies to bypass sanctions.
Chainalysis reported that Iranian wallets received $7.8 billion in cryptocurrency in 2025, up from $7.4 billion in 2024 and $3.17 billion in 2023. TRM Labs estimates slightly higher figures but indicates that most of the trading activity came from individual investors rather than government entities. Meanwhile, some research suggests the Islamic Revolutionary Guard Corps (IRGC) could account for up to 50 percent of Iran-linked transactions, moving around $3 billion in crypto since 2023.
The Central Bank of Iran, also subject to international sanctions, reportedly received at least $507 million in USDT stablecoins in 2025, according to British blockchain research firm Elliptic, in what it described as a “sophisticated strategy to bypass the global banking system.”
Tom Keatinge, director of finance and security at the Royal United Services Institute (RUSI), noted that as economic pressures on Iran intensify, the use of cryptocurrencies offers “an alternative channel for Iranians to manage their finances and mitigate the consequences of currency devaluation.”
Iran has been effectively disconnected from the dollar-based financial system and has seen a sharp decline in the value of the rial. Oil remains the largest source of foreign currency, with revenues estimated at $53 billion in 2023 by the US Energy Information Administration.
The increased adoption of cryptocurrencies has coincided with a turbulent year for Iran, including a 12-day conflict with Israel, US air strikes on nuclear facilities, anti-government protests and a government crackdown that prompted threats of further US military and financial measures.
While cryptocurrency wallets are publicly traceable on the blockchain, the identity and location of wallet holders remain opaque, making it difficult for US authorities to fully map Iranian activity. Analysts note that while sanctions can target specific wallets, users can quickly create new wallets, complicating enforcement efforts.
Platforms such as Nobitex, Iran’s largest cryptocurrency exchange, estimate that around 15 million Iranians hold or use digital assets, with 11 million active users, predominantly individuals and small investors. The platform said most users view cryptocurrency as a store of value amid the rial’s persistent decline.
According to blockchain analytics firm Nansen, some Iranians withdrew assets from Nobitex in 2025 following sharp drops in major cryptocurrencies, often transferring them to international exchanges or self-custody wallets to safeguard their holdings. Nobitex confirmed that it monitors suspicious activity but does not track the final destination or purpose of transferred funds.
Analyst Nicolai Sondergaard noted that these outflows represent a “slow, structural exit from Iran’s crypto markets throughout 2025” rather than sudden capital flight, highlighting both the resilience and adaptability of Iranian crypto users under sanctions and domestic instability.
Andrew Firman, head of national security intelligence at Chainalysis, said the scale of the challenge facing US authorities is immense. “Tracking blockchain flows and imposing sanctions on wallets requires substantial resources,” he said, adding that Iranian users can easily create new wallets to evade restrictions.
Experts warn that as the rial continues to depreciate and geopolitical uncertainty persists, the use of cryptocurrencies in Iran is likely to expand further, posing ongoing enforcement and policy challenges for Washington.
