Iran is increasingly relying on stablecoins to bypass international financial sanctions. According to data from TRM Labs and Chainalysis, the country's total crypto transaction volume reached between $8 and $10 billion by 2025. Nobitex, Iran's largest exchange, now serves around 15 million users. Blockchain analytics firm Elliptic reported that Iran's central bank purchased at least $507 million worth of USDT last year, a move widely seen as part of a broader effort to circumvent the global banking system.
IRGC-Linked Wallets Moved Over $3 Billion in Crypto
Chainalysis estimates that roughly half of the transaction volume passed through wallets linked to the Islamic Revolutionary Guard Corps (IRGC), though TRM Labs puts that figure closer to 5%. Still, TRM has tracked more than 5,000 IRGC-associated wallets that have moved over $3 billion in crypto since 2023. A January TRM report detailed that two UK-registered firms, Zedcex and Zedxion, transferred $619 million in stablecoins to IRGC-linked wallets in the first months of 2024 alone. “This is not a one-off crypto abuse scenario; it’s a sanctioned military organization systematically leveraging offshore crypto exchange infrastructure,” said Ari Redbord, head of policy at TRM Labs.
Internet Blackout During February Attack Sent Volumes Down 80%
During the February 28 attack, internet connectivity in Iran dropped by 99%, triggering an 80% decline in crypto transaction volumes within days. Many exchanges suspended withdrawals entirely or imposed severe restrictions, with some allowing mass withdrawals only twice a day. Iran's central bank went further, ordering a temporary halt to the USDT-toman trading pair — the toman serves as the primary bridge between cryptocurrencies and the local fiat currency. Panic drove Iranians to swap their rials for USDT to hedge against a plunging local currency. The trading pair became an instant barometer for the rial's value. The central bank's intervention briefly curbed runaway volatility, but after trading resumed, order books remained thin and prices highly volatile. The episode highlighted how deeply USDT has penetrated Iran's financial underground. According to TRM Labs, the system showed fragility but did not collapse under stress.
FATF: Stablecoins Account for 84% of Illicit Crypto Transactions
In early March, the Financial Action Task Force (FATF) released a new report focusing on stablecoins and anonymous wallets. Citing Chainalysis data, the FATF found that in 2025, 84% of illicit crypto transactions were conducted using stablecoins, explicitly identifying Iranian actors as users of stablecoins to expand financial operations beyond sanctions. With over 250 stablecoins circulating and a combined market cap exceeding $300 billion, the FATF called on nations to implement robust regulatory frameworks targeting stablecoin risks. It warned that many countries still lack adequate checks given the accelerating scale of stablecoin flows. Meanwhile, USDT's dollar-pegged mechanism provides both a convenient gateway for legal exchanges and a critical workaround for sanctions in places like Iran. Tether insists on a zero-tolerance policy toward illicit activity, but experts note that growing financial pressure is driving demand for crypto services. As crises unfold, Iran’s reliance on this digital lifeline becomes impossible to ignore.