Iran expanded its use of cryptocurrency to move money under sanctions, with more than $3 billion linked to networks tied to the Islamic Revolutionary Guard Corps in 2025, Chainalysis reported. The blockchain analytics firm released the estimate in its 2026 Crypto Crime Report. The study also found illicit cryptocurrency addresses received at least $154 billion in digital assets last year. That figure marks a 162% year-over-year increase in illicit flows across the global cryptocurrency ecosystem.
Chainalysis said Iranian authorities increasingly integrated digital assets into state financing strategies while facing pressure from sanctions and regional tensions. In the fourth quarter of 2025, IRGC-linked addresses handled more than half of all value received by Iranian crypto entities.
Those networks moved over $3 billion tied to militia financing, oil trade activity, and purchases of dual-use equipment. As geopolitical tensions rise, analysts ask one question: how far can sanctioned nations expand crypto finance without detection?
Chainalysis said Iranian authorities continued building crypto-based financial channels to support operations abroad. The report stated that IRGC-linked wallets moved billions across networks connected to militia groups and regional partners.
Funds supported organizations including Lebanese Hezbollah, Hamas, and the Houthis, according to the analytics firm. The transfers helped finance logistics tied to commodities, oil shipments, and weapons procurement across regional networks.
Chainalysis reported that Iranian crypto entities received significant value during the final quarter of 2025. IRGC-linked addresses accounted for more than half of those inflows during that period.
Meanwhile, Iran’s broader cryptocurrency market reached a value of $7.48 billion during 2025. The expansion reflects growing digital finance adoption inside the country as sanctions limit access to traditional payment channels.
Regional conflict also influenced cryptocurrency markets during the past week. Joint U.S. and Israeli airstrikes on Iran triggered a surge in digital asset outflows from Iranian exchanges.
Blockchain data recorded about $10.3 million in cryptocurrency leaving Iranian platforms following the strikes. Hourly outflows briefly approached $2 million as activity increased during the market reaction. At the same time, Bitcoin dropped to about $63,100 after early reports of the military operation.
Soon after, the price rebounded as investors assessed the situation and broader economic conditions. Bitcoin climbed near $70,000 and later approached $74,000 before easing again to levels above $71,000.
Meanwhile, global investors shifted attention to economic data expected to influence monetary policy. The U.S. jobs report, scheduled for release at 13:30 UTC, projected unemployment holding at 4.3%. Economists forecast nonfarm payrolls slowing to around 59,000 new jobs.
Chainalysis reported that illicit addresses worldwide received at least $154 billion in digital assets during 2025. Sanctioned nations accounted for $104 billion of those cryptocurrency flows. The analytics firm said some governments increasingly rely on blockchain systems to move funds across borders.
Digital assets help sanctioned economies conduct trade and move capital despite restrictions on traditional banking networks. Meanwhile, Venezuela recorded $44.6 billion in cryptocurrency flows during the same year.
Many Venezuelan citizens adopted crypto as protection against hyperinflation and economic instability. Informal over-the-counter brokers continued their business through physical locations and online platforms throughout the nation.
Some brokers permitted their customers to exchange bolivars from sanctioned Venezuelan banks for cryptocurrency through direct transactions. North Korea served as a primary center for illegal cryptocurrency operations in different locations around the world.
Chainalysis estimated that North Korean hackers with links to the country stole more than $2 billion in cryptocurrency during 2025. The theft total marked the country’s largest recorded year for crypto hacking activity
Also Read: Iran Crypto Activity Plunges 80% Following US-Israel Strikes and Internet Shutdowns.
Iran crypto flows rose sharply in 2025, with Chainalysis linking more than $3 billion to IRGC-connected networks. The report also showed wider growth in illicit crypto activity across sanctioned states, while regional conflict added fresh pressure to digital asset markets. The key takeaway is that crypto remains central to sanction evasion and cross-border financing.