Tensions and Hacks Drain Billions From Iran’s 2025 Crypto Market: TRM Labs

TLDR:

• Iran’s 2025 crypto flows dropped 11% to $3.7B, with July volumes collapsing more than 76% year-over-year.
• Nobitex processed over 87% of Iranian-linked transactions in 2025 despite suffering a $90M hack in June.
• Tether froze 42 Iranian-linked wallets in July, its largest-ever freeze, disrupting liquidity for local exchanges.
• Iran enacted a new capital gains tax on crypto in August 2025, placing digital assets alongside gold and forex.

The past year has reshaped Iran’s crypto market in ways few expected. Trading volumes shrank. Hacks shook confidence. Sanctions pressure mounted while new regulations added friction for ordinary users. 

Yet, crypto still offered a lifeline for many Iranians looking to protect savings. Data from TRM Labs shows a system under strain but still adapting under pressure.

Crypto Volumes Fall as Hacks and Sanctions Bite

Between January and July 2025, Iran recorded $3.7 billion in crypto flows, an 11% drop compared with 2024, according to TRM Labs. The sharpest declines came after April. Inflows in June fell more than 50% year-over-year. By July, volumes had collapsed more than 76%.

The downturn lined up with wider instability. Nuclear talks broke down, conflict with Israel erupted, and power outages disrupted access. TRM Labs reported that Nobitex, Iran’s largest exchange, still processed over 87% of transactions during the period. About $2 billion moved through the TRON network, with TRC-20 USDT dominating trades.

That concentration exposed risks. On June 18, pro-Israel hackers known as Predatory Sparrow breached Nobitex, draining $90 million. 

The incident stalled liquidity and redirected users to offshore platforms. The attackers left vanity addresses tied to the Revolutionary Guard, effectively locking the stolen funds.

Confidence in domestic platforms fell quickly. TRM analysts noted a surge in capital flight, with Nobitex outflows jumping 150% in the week before the Israel conflict. Much of that activity went to foreign services with lighter checks or none at all.

Nobitex Hack, Tether Freeze, and New Tax Shape User Behavior

The Nobitex breach wasn’t the only disruption. On July 2, Tether froze 42 Iranian-linked wallets, its largest action yet. Many had exposure to Nobitex and ties to sanctioned addresses, further cutting liquidity inside the country.

That move pushed exchanges and influencers to urge users toward DAI on Polygon, offering faster and cheaper transactions. Retail traders followed, adapting quickly to the new environment. It highlighted how users pivoted when traditional settlement paths closed.

Regulation also tightened. In August, Iran introduced a capital gains tax on crypto trades through a new law on speculative assets. 

For the first time, digital assets were grouped with gold, real estate, and forex. Implementation is phased, but the policy signals Tehran’s intent to monitor and tax the market more closely.

TRM researchers also traced crypto activity to state-linked procurement. Digital assets were used to purchase drone components, AI hardware, and bypass tools from Chinese suppliers. Alongside that, underground groups like Novin Verify sold fake IDs and documents to help Iranians skirt exchange checks.

The report added that investigators saw the first documented cases of crypto payments tied directly to espionage. Arrested Israeli citizens were reportedly compensated in digital assets for spying on Tehran’s behalf.

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