US Probes Iran's Surging Crypto Activity for Sanctions Evasion

Cryptocurrency transactions in Iran hit an estimated $8-10 billion last year as state-linked groups and retail investors turn to digital currencies.

Published on Feb. 3, 2026

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U.S. investigators are examining whether specific crypto platforms have facilitated sanctions evasion by Iranian officials, as cryptocurrency activity booms in the Islamic Republic. Iran's crypto transaction volumes hit an estimated $8-10 billion last year, with both state-linked groups and retail investors turning to digital currencies. The U.S. Treasury is now looking at whether crypto platforms have enabled state-linked players to evade sanctions when seeking to move money abroad, access hard currency or procure goods.

Why it matters

The U.S. has imposed a series of sanctions on Iran in recent years, including new measures last month targeting shadow-banking networks. Cryptocurrency activity in Iran has surged as the country has been effectively severed from the dollar-based financial system and faced a rapid devaluation of its currency. U.S. officials are concerned that crypto platforms may have enabled Iranian entities to circumvent these sanctions.

The details

According to blockchain researchers, an estimated 50% of Iran's crypto volumes last year were linked to the Islamic Revolutionary Guard Corps (IRGC), a powerful political, military and economic force with close ties to the country's leadership. The Central Bank of Iran, which is also subject to international sanctions, is said to have acquired at least $507 million worth of the stablecoin USDT in 2025 in what was described as a "sophisticated strategy to bypass the global banking system." Ordinary Iranians have also increasingly turned to crypto as a store of value amid the rial's rapid devaluation.

  • Iran's crypto transaction volumes hit an estimated $8-10 billion in 2025.
  • In 2024, Iran's crypto transaction volumes were an estimated $11.4 billion.
  • In 2023, Iran's crypto transaction volumes were an estimated $3.17 billion.

The players

TRM Labs

A U.S.-based blockchain analysis company that provided estimates on Iran's crypto activity.

Chainalysis

Another U.S.-based blockchain analysis company that provided estimates on Iran's crypto activity.

Islamic Revolutionary Guard Corps (IRGC)

A powerful political, military and economic force in Iran with close ties to the country's leadership.

Central Bank of Iran

Iran's central bank, which is subject to international economic sanctions.

Nobitex

The largest crypto exchange in Iran, with an estimated 11 million customers.

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What they’re saying

“The harder one squeezes the Iranian economy, the more one better be ready to deal with the consequences, one of which is the expanding use of crypto.”

— Tom Keatinge, Director of the Centre for Finance and Security at UK think-tank the Royal United Services Institute

“It requires significant resources to do the kind of blockchain tracing and so on, to issue the sanctions. It's the ultimate high-speed whack-a-mole game.”

— Tom Keatinge, Director of the Centre for Finance and Security at UK think-tank the Royal United Services Institute

What’s next

The U.S. Treasury is expected to continue its investigation into whether specific crypto platforms have facilitated sanctions evasion by Iranian entities.

The takeaway

The surge in cryptocurrency activity in Iran highlights the challenges facing U.S. authorities in enforcing sanctions, as digital assets provide new avenues for Iranian individuals and organizations to circumvent the traditional financial system. This underscores the need for enhanced monitoring and regulation of the crypto industry to prevent it from being used to evade international sanctions.