Just hours before a coordinated military response by the United States and Israel against Iran, a crypto user named Firouz in Tehran took decisive action to safeguard his digital assets. Amid rising tensions, he moved his entire cryptocurrency portfolio from Nobitex, the leading digital asset exchange in Iran, to a personal wallet. “I felt war was imminent and didn’t want to risk losing ownership of my funds,” he explained, citing concerns over the implications of state control and potential cyberattacks during the conflict.
Iran’s cryptocurrency market has grown significantly, valued at over $7.78 billion last year, according to Chainalysis. This growth has been driven not only by everyday citizens seeking refuge from inflation and a plummeting rial but also by significant activity from state actors, particularly the Islamic Revolutionary Guard Corps (IRGC), which accounted for nearly half of recorded on-chain movements in the final quarter of last year. Utilizing cryptocurrencies allows Iran to circumvent international sanctions, enabling the sale of oil, procurement of weapons, and the importation of necessary goods with greater ease than through traditional banking channels.
The emergence of cryptocurrency as a lifeline has intensified the ongoing tug-of-war with the U.S., which is attempting to diminish Iran’s limited economic avenues. In April, Iranian officials announced plans to collect tolls from oil ships transiting the vital Strait of Hormuz in cryptocurrency, with reports suggesting that they have begun accepting these payments. Kaitlin Martin, a senior intelligence analyst at Chainalysis, pointed out that jurisdictions under tight sanctions often gravitate toward cryptocurrencies due to their ability to provide financial channels otherwise blocked by international measures.
In a direct response to Iran’s increasing reliance on digital assets, the U.S. recently froze $344 million in Iran-linked crypto wallets. U.S. Treasury Secretary Scott Bessent expressed a commitment to trace financial movements associated with the Iranian regime, stating, “We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime.”
The sanctions regime has vastly disrupted the Iranian economy, restricting citizens’ access to the global financial system. In this context, cryptocurrencies have emerged as a crucial stabilizing force, helping individuals preserve the value of their earnings amidst rampant inflation. Keeping funds within Iran’s state-controlled financial system poses significant risk, given that the rial has lost approximately 90% of its value since 2018.
However, the reality for average Iranians within the crypto landscape has become increasingly complicated. The IRGC has taken control of many crypto mining operations, further complicating the environment for independent miners and traders. This control has led to the effective conversion of subsidized energy into crypto assets that sidestep sanctions. As a result, the Office of Foreign Assets Control (OFAC) has classified Iran’s entire crypto framework as high-risk, causing international exchanges to freeze Iranian accounts and cutting off access to the broader crypto community.
Further compounding these obstacles, Iran has implemented strict internet restrictions since the onset of warfare, alongside heightened mistrust of state-controlled entities, all of which hamper crypto trading efforts. Despite these challenges, there was a notable surge in crypto activity following military escalations. Between February 28 and March 2, post-strike monitoring revealed about $10.3 million in cryptocurrency outflows. Much of this activity was linked to wallets associated with the IRGC, indicating possible strategic movements of state funds in response to the conflict.
The trend continued during a subsequent military engagement in June 2025, when crypto outflows from Nobitex surged by over 150%. The platform, comprising 11 million users, facilitates easy conversions of Iranian rials into cryptocurrencies, permitting users to transfer funds outside of Iran while circumventing international finance monitoring. Following the initial attacks, outgoing transactions soared by 700%, evidencing the platform’s crucial role in the evolving financial landscape amid conflict.
Cybersecurity threats emerged prominently, as illustrated by a cyberattack that resulted in the theft of $90 million in assets from Nobitex, attributed to a group linked to Israel. The incident underscored the precarious nature of cryptocurrency in volatile environments.
In 2022, the Central Bank of Iran acquired more than $500 million worth of USDT, a stablecoin pegged to the U.S. dollar, illustrating attempts to navigate traditional banking restrictions. Despite Iran’s adaptive strategies, the U.S. has intensified sanctions on entities aiding Iran’s escape from economic pressure, including two unauthorized UK-based crypto exchanges.
As regulators globally become increasingly cognizant of the role of cryptocurrencies in Iran’s economy, additional enforcement actions are anticipated. The complex interplay between sanctions, warfare, and digital finance continues to shape the evolving narrative of Iran’s economic landscape.
