Summary:
Cryptocurrency flows into Iranian trading platforms declined by 11% in 2025, driven by geopolitical tensions with Israel, a $90 million hack on Nobitex (Iran’s largest crypto exchange), and Tether’s blacklisting of Iranian-linked addresses. Blockchain analytics firm TRM Labs reports these disruptions caused a sharp liquidity drop, particularly in June and July, as Iranians increasingly relied on stablecoins to combat inflation and bypass sanctions.
What This Means for You:
- Cryptocurrency investors in Iran must exercise caution due to heightened risks of exchange hacks and geopolitical instability.
- Consider diversifying stablecoin holdings across multiple networks (e.g., TRON, Polygon) to mitigate risks of blacklisting or network failures.
- Monitor geopolitical developments closely, as escalating tensions could further disrupt crypto flows and market stability.
- Be wary of unregulated foreign exchanges with lax KYC protocols, as they may expose users to security and compliance risks.
Iranian Crypto Flows Drop On Israel Conflict, Nobitex Hack:
Flows into Iranian crypto trading platforms have fallen in 2025 due to a breakdown in nuclear negotiations with Israel, a $90 million hack on Iran’s largest crypto exchange, and a major stablecoin blacklisting, says blockchain analytics firm TRM Labs.
Iranian crypto flows hit $3.7 billion between January and July, an 11% decrease compared to the same period last year, with the worst drop off coming in June and July, TRM Labs said in a report on Tuesday.
“This downturn coincided with a breakdown in nuclear negotiations, a 12-day conflict with Israel beginning June 13, and widespread power outages in Iran — driven by a combination of Israeli kinetic and cyber operations, as well as regime-initiated shutdowns.”
Iran’s crypto flows started to sharply drop in June, just after the $90 million hack on Nobitex, which handles 87% of the country’s crypto transactions.
Many Iranians rely on US dollar stablecoins as a store of value amid skyrocketing inflation and to skirt tough sanctions on the country, which has largely cut it off from the global economy.
Nobitex Hack Big Contributor to Iran’s Crypto Shake-Up
Confidence in Iran-based virtual asset service providers (VASPs) deteriorated following Nobitex’s security breach, which came at the hands of pro-Israel group Predatory Sparrow on June 18 — when tensions between Iran and Israel were at their peak.
While Nobitex continues to dominate Iran crypto transaction volume, the incident disrupted liquidity, slowed transaction processing and temporarily pushed users toward alternative platforms, TRM said.
Heightened Iran-Israel tensions further amplified the outflows, which surged more than 150% in the worst week and a large percentage of that volume headed to high-risk foreign exchanges with little to no Know Your Customer checks, TRM said.
Tether’s Blacklisting Slowed Flows
Stablecoin issuer Tether also carried out its largest-ever freeze of Iranian-linked funds, blacklisting 42 crypto addresses with Tether (USDT) balances on July 2.
The incident sparked a coordinated push from Iranian exchanges, influencers and state-backed channels for users to offload their TRON-based USDT balances — Iran’s most widely used network and token — and move funds into Dai (DAI) on Polygon.
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Many everyday Iranians continue to turn to crypto as a hedge against inflation, TRM said, highlighting Iran’s strong reliance on stablecoins.
Iran Continues to Use Crypto for Political Objectives
Iran is still relying on crypto to pay for sensitive goods from Chinese chip resellers, including hardware critical for artificial intelligence, drone components, and other electrical equipment — enabling it to effectively bypass sanctions, TRM noted.
It has also used crypto to fund espionage payments with foreign operatives, the crypto analytics firm added.
However, illicit crypto transactions in Iran still only account for less than 1% of total volume.
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Extra Information:
For further insights into crypto market trends in sanctioned jurisdictions, refer to this analysis on illicit crypto transactions. To understand the role of stablecoins in inflation hedging, explore this guide on Bitcoin and inflation.
People Also Ask About:
- Why are stablecoins popular in Iran? They provide a hedge against hyperinflation and allow Iranians to bypass international sanctions.
- What caused the Nobitex hack? The hack was attributed to pro-Israel group Predatory Sparrow, exploiting vulnerabilities during peak Iran-Israel tensions.
- How did Tether’s blacklisting affect Iran? It forced Iranian users to shift their USDT holdings to alternative stablecoins like DAI on Polygon.
- What are the risks of using unregulated crypto exchanges? They often lack KYC protocols, exposing users to security breaches and regulatory risks.
- How is crypto used in geopolitical conflicts? It enables sanctioned nations to fund sensitive purchases and bypass traditional financial systems.
Expert Opinion:
The decline in Iranian crypto flows underscores the fragility of crypto markets in politically volatile regions. As stablecoins become increasingly critical for financial stability in sanctioned economies, regulators and users alike must balance innovation with robust security measures to mitigate risks.
Key Terms:
- Iran crypto flows 2025
- Nobitex hack impact
- Stablecoins in Iran
- Tether blacklisting Iran
- Cryptocurrency and inflation hedging
- Geopolitical crypto risks
- Iran-Israel crypto tensions
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