U.S. authorities are examining whether cryptocurrency platforms have enabled Iranian officials and state-linked entities to evade international sanctions, according to blockchain researchers, as digital asset activity surges across the Islamic Republic.
Iran’s crypto transaction volumes are estimated to have reached between $8 billion and $10 billion last year, driven by both retail investors and groups linked to the state. Data from TRM Labs and Chainalysis show a sharp rise in activity as Iran increasingly turns to digital currencies amid economic isolation and currency depreciation.
The U.S. Treasury is assessing whether crypto platforms have been used by Iranian-linked actors to move funds overseas, access hard currency, or procure goods in violation of sanctions, said Ari Redbord, global head of policy at TRM Labs. While no specific platforms were identified, the Treasury has previously warned of so-called “shadow banking” networks that use cryptocurrency to skirt restrictions.
Chainalysis estimates that Iranian crypto wallets received a record $7.8 billion in 2025, up from $7.4 billion in 2024 and $3.17 billion in 2023. TRM Labs places total crypto activity at around $10 billion last year. However, researchers caution that gaining a complete picture is extremely difficult due to the pseudonymous nature of blockchain transactions.
There is also disagreement over how much activity is linked to the Iranian state. Chainalysis estimates roughly half of last year’s volumes were associated with the Islamic Revolutionary Guard Corps (IRGC), while TRM Labs believes about 95% of flows come from retail investors, despite identifying more than 5,000 IRGC-linked wallet addresses.
Other researchers say Iran’s central bank may also be using crypto to bypass global banking systems. British blockchain firm Elliptic reported that the Central Bank of Iran acquired at least $507 million worth of the USDT stablecoin in 2025. These findings could not be independently verified by Reuters.
Cryptocurrency use in Iran has accelerated alongside repeated crises, including war with Israel, U.S. strikes on nuclear facilities, and widespread protests. Washington imposed fresh sanctions last month on individuals linked to Iranian shadow-banking networks, adding to pressure on the country’s finances.
Meanwhile, ordinary Iranians are increasingly turning to crypto as a store of value amid the rapid devaluation of the rial. Nobitex, Iran’s largest crypto exchange, estimates around 15 million people in the country have some exposure to digital assets. Researchers say crypto has increasingly acted as a gradual exit route for capital, with funds moving from local exchanges to international platforms.
Experts warn that enforcement remains difficult. “It’s the ultimate high-speed whack-a-mole game,” said Tom Keatinge of the Royal United Services Institute, noting the significant resources required to trace blockchain activity and enforce sanctions effectively.
The surge in Iran crypto sanctions concerns highlights the growing challenge facing regulators as digital currencies become a tool for both economic survival and sanctions evasion.
