Flows into Iranian crypto trading platforms have declined significantly in 2025, a trend driven by a combination of geopolitical tensions, an armed conflict with Israel, and a major hack on the country's largest crypto exchange.
According to a report by blockchain analytics firm TRM Labs, crypto flows into Iran totaled $3.7 billion between January and July, an 11% decrease from the previous year. The most notable drop occurred in June and July, coinciding with several key events:
The Nobitex Hack: In June, Iran’s biggest crypto exchange, Nobitex, which handles 87% of the country's crypto transactions, was hit with a $90 million hack by a pro-Israel group. This security breach severely eroded confidence in local crypto service providers, leading to liquidity disruptions and pushing users toward foreign exchanges with minimal security checks.
Tether's Blacklisting: On July 2, stablecoin issuer Tether blacklisted 42 crypto addresses linked to Iran—its biggest-ever freeze of Iranian-linked funds. This action prompted a coordinated effort by Iranian exchanges and influencers to encourage users to move their funds from TRON-based USDT to DAI on the Polygon network. This move was particularly significant as many Iranians rely on US dollar stablecoins like USDT to hedge against skyrocketing inflation and bypass international sanctions.
Despite the downturn in flows, the report notes that Iran continues to use cryptocurrency for strategic purposes. The country leverages crypto to pay for sensitive goods—such as drone components and AI hardware—from Chinese resellers, effectively bypassing sanctions. It has also used crypto to fund espionage payments to foreign operatives.
While these activities persist, TRM Labs stated that illicit transactions still account for less than 1% of Iran's total crypto volume.
August 2025, Cryptoniteuae