Between January and July 2025, Iran’s crypto flows totaled ~ $3.7 billion, marking an 11 percent decline compared to the same period in 2024, a report by TRM Labs unveiled. The sharpest drops occurred post-April, data shows that inflows in June plunged over 50 percent, and July collapsed by more than 76 percent.
The drop can also be attributed to the 12-day conflict with Israel that started on June 13. This led to widespread power outages, cyber operations, and regime-initiated shutdowns, all of which disrupted crypto activity in Iran.
Nobitex hack shakes market
A major factor in the decline was the June 18 hack of Nobitex, Iran’s largest crypto exchange, which resulted in a $90 million loss. The attack, attributed to the pro-Israel group Predatory Sparrow, froze liquidity, undermined public trust, and caused a spike in outflows. In the days following the hack, there was a more than 150 percent surge in funds exiting to foreign platforms. Nobitex was known for handling over 87% of all Iranian-linked crypto transaction volume in 2025.
Source: TRM Labs
The report highlighted how of the over $3 billion processed by Nobitex, $2 billion moved through the TRON network, reflecting a heavy concentration in both platform and chain choice. The $90 million haul was transferred into vanity addresses referencing the Islamic Revolutionary Guard Corps (IRGC), effectively ensuring the funds would remain frozen and unusable.
Tether freezes wallets
Shortly after, on July 2, Tether froze 42 Iranian-linked wallets, many tied to Nobitex and IRGC-associated addresses. While the ultimate ownership of these addresses remains unconfirmed, their connections to Iranian exchanges and sanctioned actors were well established. Interestingly, the move disrupted settlement patterns and pushed users to adjust by shifting from USDT on TRON to DAI on Polygon.
Despite the disruption, digital assets remain a vital economic artery for sanctioned entities in Iran. They use it as a tool to engage in procurement and covert operations, as well as for ordinary Iranians seeking stability amid inflation. Outflows have decreased less than inflows, which gives the common Iranian some hope. But any future disruptions could redefine the national crypto strategy and public engagement.