Iran’s crypto ecosystem hit $7.8 billion in 2025, split between state-controlled military networks and civilians fleeing a currency that’s lost 90% of its value since 2018, according to Chainalysis research.
IRGC Controls Half Of Iran’s Crypto Activity
The Islamic Revolutionary Guard Corps (IRGC) accounted for over 50% of Iran’s total crypto value received in Q4 2025, up from $2 billion in 2024 to $3 billion in 2025.
Chainalysis tracked addresses linked to IRGC operatives, sanctions-evading networks, and facilitators moving illicit oil and arms across the Middle East.
The firm said the real figure is likely higher since the data only includes wallets publicly identified by U.S. Treasury and Israeli authorities, excluding shell companies and unidentified intermediaries.
Civilians Withdrew Bitcoin During Protests And Internet Blackout
Bitcoin (CRYPTO: BTC) withdrawals from Iranian exchanges to personal wallets surged after mass protests began December 28, 2025, just before authorities imposed a nationwide internet blackout.
Iranians pulled Bitcoin off exchanges and into wallets they control directly as the rial collapses, with inflation running between 40-50% and the currency nearly worthless against the dollar or euro.
Moving Bitcoin to personal wallets means the government can’t freeze or seize it, which matters when people may need to leave the country or when banks shut down access during protests.
Chainalysis compared withdrawal data from November 1 to December 27 against the protest period starting December 28, finding both the dollar amounts and number of transfers jumped significantly.
Crypto Activity Spikes With Political Events
Iran’s crypto volumes spiked around major events including the Kerman bombings in January 2024, Iran’s missile strikes against Israel in October 2024, and the 12-day war in June 2025.
The June 2025 conflict saw joint U.S.-Israeli strikes against Iran’s nuclear and ballistic missile programs, plus cyberattacks against Nobitex, Iran’s largest crypto exchange, and Bank Sepah.
Chainalysis said crypto activity correlates directly with geopolitical instability, showing blockchain data can provide real-time insights into economic impacts of political events.
Why This Matters For Crypto Markets
Iran’s crypto economy shows Bitcoin’s dual role as both a sanctions-evading tool for state actors and a financial escape route for civilians under authoritarian regimes.
The pattern mirrors trends in other countries facing war, economic collapse, or government crackdowns where Bitcoin adoption accelerates during crises.
Bitcoin Policy Institute senior fellow Bradley Rettler said the self-custody surge reflects Bitcoin’s appeal in environments with financial repression and currency instability.
Image: Shutterstock
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