Iran’s cryptocurrency ecosystem has been rocked hard this year by the Nobitex hack and its geopolitical tensions with Israel.
According to blockchain analytics firm TRM Labs, Iran is experiencing an 11% drop in crypto flows this year, so far. And it’s still only August.
The devastating $90 million hack occurred in June 2025 on Nobitex, Iran’s largest crypto exchange.
Nobitex processes 87% of Iran’s crypto transactions.
Nobitex Hack Shakes Iran’s Crypto Landscape
On June 18, 2025 at the height of Iran-Israel tensions, the pro-Israel hacker group Gonjeshke Darande (Predatory Sparrow) breached Nobitex.
The attack resulted in the theft of $90 million in digital assets and the leak of the exchange’s full source code.
The hack also made people lose confidence in Iran’s virtual asset service providers (VASPs).
Since then Nobitex has resumed services and announced that verified users could withdraw funds with trading and deposits to follow gradually.
The exchange warned users against using old wallet addresses due to a system migration.
The Nobitex hack disrupted liquidity and slowed transaction processing, temporarily pushing users to alternative platforms.
TRM Labs reported that unfortunately many of which are high-risk foreign exchanges with minimal Know Your Customer (KYC) checks.
Iran’s outflows surged by over 150% during the worst week following the attack.
Geopolitical Tensions and Market Fallout
The Nobitex hack coincided with escalating tensions between Iran and Israel after a breakdown in nuclear negotiations.
In fact, Darande claimed the attack was politically motivated, alleging Nobitex’s ties to the Iranian government and its role in funding “malicious activities.”
Middle Eastern tensions negatively excited global markets, with the cryptocurrency sector losing over $1 billion in value.
Major cryptocurrencies plummeted, with Bitcoin dropping 5.8%, Ethereum falling 12%, XRP declining 7.75%, and Solana shedding 12.37%.
Bitcoin alone saw $437 million liquidated in 24 hours.
Investors shifted to safer assets like gold instead, which saw sharp price increases.
Meanwhile, oil prices spiked 9% amid fears of disruptions in the Strait of Hormuz.
TRM Labs noted that Iran’s crypto flows fell to $3.7 billion from January to July 2025, an 11% decline from the previous year.
The sharpest dip was recorded in June and July 2025.
The downturn was exacerbated by widespread power outages in Iran, driven by Israeli cyberattacks and regime initiated shutdowns.
In response to the Nobitex hack, Iranian regulators imposed stricter rules, limiting crypto exchange operations to between 10 a.m. and 8 p.m.
Though these measures aim to enhance security many find these strain the sector’s accessibility.
Iran’s Crypto Use Amid Sanctions
TRM Labs highlighted that Iran uses cryptocurrencies to procure sensitive goods, such as AI hardware and drone components, from Chinese resellers.
These effectively skirting international sanctions.
The country has also employed crypto for espionage payments to foreign operatives.
However, illicit transactions account for less than 1% of Iran’s total crypto volume, TRM noted.
Tether Blacklisting and Stablecoin Shifts
Adding to the turmoil, stablecoin issuer Tether froze 42 Iranian-linked wallets holding USDT on July 2.
This move marked the largest-ever blacklist of Iranian funds.
Iranian exchanges and influencers shifted users from TRON-based USDT, Iran’s most widely used token, to Dai on the Polygon network.
Despite these challenges though, many Iranians continue to rely on stablecoins like USDT and Dai as a hedge against rampant inflation. This also helps them bypass sanctions that have isolated Iran from global financial systems, thanks to its regime.
