Iran’s Crypto Activity Hits $7.78B as IRGC Presence Grows, Chainalysis Says
What Did Chainalysis Find About Iran’s Crypto Market?
Iran’s crypto ecosystem processed more than $7.78 billion in onchain activity during 2025, with transaction flows closely tracking domestic unrest and geopolitical developments, according to a new report from blockchain forensics firm Chainalysis. The firm said activity levels surged around key political flashpoints, including internal security incidents and regional escalations.
One of the report’s central findings is the growing share of activity linked to Iran’s Islamic Revolutionary Guard Corps. Chainalysis said wallets tied to the IRGC accounted for roughly 50% of the total value received by Iranian addresses in the fourth quarter of 2025, a proportion that has climbed steadily over time.
The firm linked this rise to the group’s expanding economic footprint inside Iran, where sanctions and financial isolation have pushed both state-linked actors and civilians toward alternative financial channels.
Investor Takeaway
Why Has Crypto Become Central to Iran’s Financial Activity?
Chainalysis described cryptocurrency as serving two parallel roles in Iran: a financial lifeline for households facing inflation and currency fragileness, and a funding route for sanctioned entities cut off from the global banking system.
“Cryptocurrency has emerged as a critical financial alternative for many Iranians,” the firm wrote, pointing to persistent inflation, depreciation of the rial, and tightening external pressure. In that environment, access to value storage and transfer options unavailable through traditional channels.
The report found that Iran’s onchain volumes spike around moments of instability. Domestic attacks, regional military developments, and cyber incidents targeting financial infrastructure have repeatedly coincided with sudden increases in crypto usage, suggesting users turn to onchain rails when confidence in local systems fragileens.
What Does Retail Behavior Reveal During Periods of Unrest?
Beyond state-linked activity, Chainalysis highlighted changes in retail behavior during recent mass protests. The firm observed sharp increases in transfers from Iranian platforms to personal wallets, particularly involving BTC.
The most pronounced shift involved withdrawals to unattributed wallets, a pattern Chainalysis described as “possibly a flight to securety.” Such behavior typically reflects efforts by individuals to move funds out of custodial platforms and into self-controlled storage during periods of political or financial stress.
This pattern mirrors behavior viewn in other countries experiencing unrest, where crypto users prioritize direct custody when trust in institutions or infrastructure declines.
Investor Takeaway
How Does Iran Fit Into Broader Sanctions-Evasion Trends?
The findings add to a growing body of research showing nation-state and sanctions-related activity scaling onchain. In its latest crypto crime overview, Chainalysis estimated that illicit cryptocurrency addresses received at least $154 billion in 2025. A major driver was a 694% increase in value received by sanctioned entities, though the firm cautioned the figure represents a lower-bound estimate that may rise as more addresses are identified.
Other investigations have pointed to similar patterns. TRM Labs said two UK-registered entities, which it described as operating as a single platform, processed around $1 billion in funds tied to the IRGC. Separately, the Financial Times reported that Iranian authorities have discussed using in weapons transactions to bypass sanctions.
These cases show how crypto infrastructure can support both civilian economic activity and state-linked financing under sanctions, blurring the line between survival use cases and organized evasion.
What Are the Implications for Markets and Regulation?
Iran’s crypto activity highlights a challenge for regulators and compliance teams worldwide. Onchain transparency allows firms like Chainalysis to track flows and identify linked entities, yet enforcement becomes harder as activity .
For platforms and service providers, exposure to sanctioned flows increases legal and operational risk. For policymakers, the data reinforces the view that crypto has become embedded in geopolitical and economic stress zones rather than remaining a niche financial tool.
