Iran’s Central Bank Acquired $507 Million in USDT to Combat Currency Crisis
Blockchain intelligence firm Elliptic revealed that Iran’s Central Bank (CBI) accumulated at least $507 million in USDT, Tether’s dollar-pegged stablecoin, mostly over the course of 2025. Leaked documents detail two major purchases in April and May 2025.
The discovery, published on January 21, 2026, came from analyzing leaked documents and blockchain data that mapped over 50 wallet addresses linked to Iran’s Central Bank. Elliptic co-founder Dr. Tom Robinson noted this figure should be considered a lower bound, as the analysis only includes wallets attributed to the CBI with high confidence.
Why Iran Turned to Cryptocurrency
Iran’s national currency, the rial, has experienced catastrophic devaluation. The rial lost half its value in just eight months during 2025, eventually reaching 1.47 million rials per dollar by January 2026. To put this in perspective, when Iran signed the 2015 nuclear agreement, the rial traded at around 32,000 per dollar.
The Central Bank appears to have used USDT as a tool for currency intervention. By acquiring dollar-pegged stablecoins, Iranian authorities created what Elliptic describes as “digital off-book eurodollar accounts” that operate outside the reach of U.S. financial authorities. This allowed them to inject dollar liquidity into local markets without accessing traditional banking systems blocked by international sanctions.
Source: elliptic.co
The purchases were made using Emirati Dirhams (AED), according to Elliptic’s analysis of the leaked documents. Until June 2025, most USDT flowed to Nobitex, Iran’s largest cryptocurrency exchange, which handled approximately 87% of the country’s crypto transaction volume.
The Nobitex Hack Changed Everything
On June 18, 2025, the pro-Israel hacking group Gonjeshke Darande (meaning “Predatory Sparrow”) attacked Nobitex, stealing $90 million in various cryptocurrencies. Unlike typical crypto heists, the hackers had no intention of keeping the money. Instead, they destroyed the funds by sending them to inaccessible wallet addresses containing anti-IRGC messages.
The group claimed Nobitex served as “a key regime tool for financing terrorism and violating sanctions.” They also leaked the exchange’s entire source code two days later, revealing sophisticated privacy tools designed to evade blockchain tracking and compliance checks.
Following this breach, Iran’s Central Bank shifted strategies. Instead of sending USDT to Nobitex, they began routing funds through cross-chain bridges to move assets from the TRON network to Ethereum, then converting them through decentralized exchanges.
Tether Strikes Back
Tether, the company behind USDT, responded with aggressive enforcement actions. On June 15, 2025, the firm froze wallets holding 37 million USDT linked to the Central Bank. The largest action came on July 2, 2025, when Tether blacklisted 42 wallets connected to Iranian entities.
By late June, Tether had frozen 112 wallets holding approximately $700 million in USDT, with the majority hosted on the TRON blockchain. More than half of these frozen wallets were linked to either Nobitex or Iran’s Islamic Revolutionary Guard Corps (IRGC).
These freezes had immediate market impact. Iranian cryptocurrency flows dropped 11% to $3.7 billion between January and July 2025 compared to the same period in 2024. June flows fell 50% year-over-year, while July volumes collapsed by 76%.
Iranian users scrambled to adapt. Many converted their TRON-based USDT holdings to DAI, another dollar-pegged stablecoin, on the Polygon network. Outflows from Iranian exchanges surged 150% during the worst week, with users moving funds to foreign platforms with minimal identity verification requirements.
Economic Desperation Fuels Crypto Adoption
Iran’s economic crisis extends far beyond currency devaluation. Inflation reached 42.2% in December 2025, crushing household budgets. Food prices jumped 72% year-over-year, while healthcare costs surged 50%.
The country’s GDP contracted from $600 billion in 2010 to an estimated $356 billion in 2025. Reimposed U.S. sanctions under the Trump administration have severely limited Iran’s oil exports and access to global financial markets. The UN also reinstated nuclear-related sanctions in September 2025 through the “snapback” mechanism.
For ordinary Iranians, cryptocurrency offers one of the few ways to preserve savings against runaway inflation. However, blockchain research firm TRM Labs found that illicit activity accounts for only 0.9% of Iranian exchange volume—matching the global average. Most crypto users are regular citizens trying to protect their wealth, not sanctioned entities evading restrictions.
The Broader Iranian Crypto Network
The Central Bank’s USDT purchases represent just one piece of Iran’s cryptocurrency infrastructure. In September 2025, Israel’s counter-terror bureau identified 187 USDT wallets belonging to the IRGC that collectively received $1.5 billion in Tether.
Separate investigations revealed that two UK-registered cryptocurrency exchanges, Zedcex and Zedxion, moved approximately $1 billion for the IRGC between 2023 and 2025. At its peak in 2024, IRGC-linked transactions represented 87% of these exchanges’ total volume.
The transparency of blockchain technology cuts both ways. While it allows sanctioned entities to operate outside traditional banking, it also enables investigators to track every transaction. Elliptic emphasized that blockchain analytics tools can identify illicit flows and help stablecoin issuers freeze problematic wallets at key enforcement points like exchanges and custodians.
Crypto’s Double-Edged Sword
Iran’s use of USDT highlights the ongoing tension between cryptocurrency’s promise of financial freedom and concerns about sanctions evasion. The Central Bank’s $507 million accumulation demonstrates how digital assets can serve as tools for state-level sanctions circumvention, creating challenges for international enforcement efforts.
Yet the same blockchain transparency that enabled Elliptic’s investigation also empowers compliance teams. Tether has frozen over $2.8 billion in USDT across more than 4,500 wallets since inception, including substantial Iranian-linked holdings. The company states it cooperates with law enforcement agencies and follows U.S. sanctions regulations.
As Iran’s economic crisis deepens and the rial continues its historic collapse, cryptocurrency will likely remain a critical financial tool for both the regime and ordinary citizens. The question remains whether enforcement mechanisms can effectively distinguish between sanctions evasion and legitimate use by civilians struggling under economic pressure.
The Sanctions Tech Race Continues
The Iran Central Bank case demonstrates that the battle between sanctions enforcement and evasion has moved to blockchain networks. While traditional banking sanctions forced Iran toward cryptocurrency, blockchain analytics firms and stablecoin issuers are developing increasingly sophisticated tools to track and block illicit activity. This technological arms race shows no signs of slowing as both sides adapt their strategies.
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