Iran's crypto ecosystem nears $8B as IRGC footprint grows and bitcoin withdrawals surge during protests: Chainalysis

Iran’s crypto ecosystem grew to more than $7.78 billion in 2025, with activity closely tracking major political flashpoints and a rising share tied to the Islamic Revolutionary Guard Corps, according to a new analysis from blockchain forensics firm Chainalysis.

The report said the IRGC’s onchain activity represented approximately 50% of the total value received by Iranian crypto addresses in the fourth quarter of 2025, a share Chainalysis noted has increased over time as the group’s economic influence has expanded more broadly.

Crypto has offered both a financial lifeline for citizens and a funding rail for sanctioned actors, analysts at the forensic provider said. “Cryptocurrency has emerged as a critical financial alternative for many Iranians,” the firm wrote, citing accelerating currency weakness, high inflation, and tightening external pressure.

The report noted that Iran’s onchain activity has shown “significant spikes” around major events, including domestic attacks, regional escalations, and episodes of conflict that have coincided with cyber incidents targeting Iranian financial infrastructure.

The analysis also highlighted a shift in retail behavior during recent unrest. Chainalysis said it observed “substantial increases” in transfers to personal wallets during the mass protest movement. Notably, the most pronounced move stemmed from bitcoin withdrawals from Iranian exchanges to unattributed personal wallets — behavior the firm described as “possibly as a flight to safety.”

Nation-states tap crypto for sanctions evasion

These findings add to a widening body of research showing nation-state and sanctions-related activity scaling onchain.

In its latest crypto crime report overview, Chainalysis estimated illicit cryptocurrency addresses received at least $154 billion in 2025, driven in part by a 694% increase in value received by sanctioned entities. The report also noted that the totals remain a lower-bound estimate that can rise as more addresses are identified.

Iran-linked financing activity has also drawn scrutiny outside Chainalysis. TRM Labs said in a recent case study that two UK-registered entities — which it described as functioning as a single exchange operation — processed roughly $1 billion in funds linked to the IRGC. The Financial Times also reported that Iranian authorities have mulled crypto payments in weapon sales to evade sanctions.