Iran's Cryptocurrency Use to Evade Sanctions Intensifies Amid Crisis

Iran is reportedly using cryptocurrencies to bypass international sanctions, particularly benefiting its Revolutionary Guards and civilians facing inflation. Between February 28 and March 2, over $10 million worth of cryptocurrencies was transferred from Iranian exchanges, coinciding with the onset of Israeli-US airstrikes. Experts suggest this surge indicates involvement from regime actors, driven by fears of additional sanctions or cyberattacks. In 2025, hackers linked to Israel stole $90 million from the Iranian cryptocurrency platform Nobitex. Chainalysis reports that wallets associated with the Revolutionary Guards received over $3 billion in cryptocurrencies last year, indicating a significant flow of funds. The Financial Times noted that Iran has offered advanced weapons for sale using cryptocurrencies, contributing to a shadow banking system. Civilians are increasingly turning to Bitcoin as a means of securing their savings against inflation, which is nearing 50%. The situation reflects a complex interplay of state and civilian cryptocurrency use amid ongoing geopolitical tensions.

Key Points: • Iran is leveraging cryptocurrencies to circumvent international sanctions. • Over $10 million in crypto was moved from Iranian exchanges during a recent crisis. • Wallets linked to the Revolutionary Guards received over $3 billion in crypto last year.