Lucía Peña
Iran’s cryptocurrency ecosystem crossed a major threshold in 2025, with total activity exceeding $7.78 billion, according to a new analysis from blockchain intelligence firm Chainalysis. The report links this growth to political instability, economic pressure, and expanding involvement from sanctioned state-linked groups.
Chainalysis found that wallets connected to the Islamic Revolutionary Guard Corps (IRGC) accounted for nearly 50% of all crypto value received by Iranian addresses in Q4 2025. This share has climbed steadily as the organization’s economic footprint has widened inside and outside Iran.
The data suggests that state-aligned entities are becoming increasingly active in crypto markets, using blockchain rails alongside traditional financial channels.
Beyond geopolitics, cryptocurrency has emerged as a critical survival tool for everyday Iranians. With the national currency weakening, inflation accelerating, and access to global banking restricted, many citizens are turning to crypto as a store of value and a means of cross-border payment.
“Crypto is now a key financial alternative for many Iranians under economic strain,” the report noted.
Onchain Spikes Follow Conflict and Cyber Events
Chainalysis observed sharp surges in crypto activity around major political and security flashpoints. These included:
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Domestic attacks and protests
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Regional military escalations
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Cyber incidents targeting Iranian financial infrastructure
Each episode was followed by noticeable jumps in transaction volume, reflecting both capital flight and operational funding needs.
Retail Investors Shift to Personal Wallets During Unrest
During mass protests, analysts saw a large migration of funds from exchanges to private wallets. The strongest signal came from bitcoin withdrawals into unattributed personal addresses, behavior Chainalysis described as a potential “flight to safety.”
This trend suggests growing public concern over asset custody, surveillance, and financial access during periods of instability.
Sanctions-Evasion Activity Expands Onchain
Iran’s crypto usage fits into a broader global pattern. In its latest crime overview, Chainalysis estimated that illicit crypto addresses received at least $154 billion in 2025, driven in part by a 694% surge in value flowing to sanctioned entities.
The firm stressed that these numbers likely understate the real scale, since new wallets tied to illicit activity continue to be identified over time.
International Scrutiny Intensifies
Other investigations have echoed these concerns. TRM Labs reported that two UK-registered companies — operating as a single exchange-like entity — handled roughly $1 billion in transactions linked to the IRGC. Separately, media reports indicate that Iranian officials have explored crypto-based payments for weapons deals as a way to bypass international sanctions.
A Market Shaped by Pressure and Politics
The data paints a complex picture: crypto in Iran is both a lifeline for civilians and a strategic financial rail for sanctioned actors. As economic stress and geopolitical tension persist, blockchain networks are increasingly becoming infrastructure for both survival and state-level maneuvering.
