Quick overview

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The Islamic Revolutionary Guard Corps controls more than half of the country’s crypto flows—estimated at over $10 million—while the population increasingly turns to Bitcoin to preserve savings amid inflation exceeding 50%.

Since the outbreak of the war in the Middle East, cryptocurrency flows from Iran have shown unusual patterns, raising alarms among leading blockchain analytics firms. According to specialists, these assets are being used both to evade international sanctions imposed on the Revolutionary Guards and as an inflation hedge by civilians.

Largely cut off from the global financial system due to sanctions, Iran has turned to crypto assets as an alternative channel for transactions.

According to data from Chainalysis, cryptocurrencies worth more than $10 million left Iranian platforms between February 28—when Israeli and U.S. bombings began—and March 2. By the 5th of the month, roughly one-third of those funds had already been transferred to foreign platforms.

At the institutional level, both the Revolutionary Guards and the Central Bank of Iran favor stablecoins, while civilians have flocked to Bitcoin, which can be withdrawn from exchanges and stored in private wallets beyond the reach of authorities—a critical feature in a country where inflation was already near 50% before the conflict escalated.

The Iranian regime and cryptocurrencies

Kaitlin Martin told Agence France-Presse that while part of the outflows reflects panic among citizens seeking to safeguard savings, the scale suggests “the involvement of regime actors,” who fear new sanctions or cyberattacks that could cut off access to their assets.

Those concerns are not unfounded. In June 2025, cybercriminals linked to Israel seized roughly $90 million from Nobitex, according to TRM Labs.

Last year, wallets linked to the Revolutionary Guards received more than $3 billion in crypto assets—over half of the country’s total flows—according to Chainalysis, and that share continues to grow.

Meanwhile, Elliptic detected ongoing transactions even during official internet shutdowns, indicating that certain actors retain access to digital holdings despite information blackouts.

Shadow finance

According to U.S. authorities, the regime uses crypto to sell embargoed oil and finance allied armed groups, such as the Houthi movement.

Earlier this year, the Financial Times reported that Tehran had also proposed accepting cryptocurrency payments for ballistic missiles, drones, and other advanced weapons systems. “This is truly shadow finance,” Craig Timm told AFP.

Their relative anonymity—driven by global regulatory gaps—combined with speed and lower transaction costs compared to traditional banking, makes cryptocurrencies a versatile tool for countries under international sanctions, such as North Korea and Russia.