Iranian wallets move millions in crypto despite internet blackout

• $10.3m in Iranian crypto moved
• ‘Alternate connectivity’ allows trades
• IRGC heavily involved in crypto

Activity in Iran’s cryptocurrency economy spiked in the days after the conflict with the US and Israel began, despite restrictive measures put in place by Iranian monetary authorities.

The nationwide internet blackout means clarity on the impact on mainstream Iranian cryptocurrency activity will be delayed. However, “sophisticated actors with alternative connectivity” are still able to move funds, blockchain analysis provider Chainalysis said.

By March 2 total outflows from major Iranian cryptocurrency exchanges since February 28 had reached approximately $10.3 million, Chainalysis reported. That figure is higher than typical volumes in that time frame.

Nationwide connectivity is at roughly one percent of normal levels, according to internet connectivity monitor Netblocks.

Iran’s central bank ordered major exchanges Nobitex, Wallex and Tabdeal to halt trading between US dollar-linked stablecoin USDT and Iran’s fiat currency when the strikes started, according to blockchain investigations and risk consultants TRM Labs.

Nonetheless, on-chain activity on Iranian wallets shows significant activity, with transfers in the $10,000 to $100,000 range responsible for the bulk of value moved, Chainalysis found.

Most transfers from exchanges were into individual wallets, though Chainalysis also highlighted a “significant outflow” to overseas mainstream exchanges and other Iranian exchanges, as well as sanctioned wallets.

Chainalysis offered three potential reasons for the sizeable movement from exchanges into individual wallets: Iranians may be moving money into personal custody as a hedge against instability; exchanges may be cycling their held funds to obfuscate activity and protect themselves from potential cyber attackers, which has been an issue in the past; or state actors are using mainstream exchanges to launder money and engage in cross-border trade.

Annual transactions in Iran’s cryptocurrency economy were worth nearly $8 billion in 2025, Chainalysis said. Previous crises in Iran have led to “hedging” with bitcoin against the Iranian rial. Following widespread protests in December 2025 to January 2026, transactions from exchanges to wallets increased significantly.

The Islamic Revolutionary Guard Corps, an Iranian quasi-state apparatus, has increased its involvement in cryptocurrency in recent years.

In 2022, known IRGC wallets made up very little of overall Iranian cryptocurrency holdings. Today, that figure is close to 50 percent, according to Chainalysis – and this only accounts for wallets sanctioned by US and Israeli authorities. It does not include shell companies, financiers, or wallets not yet identified as IRGC-linked.

“These extraordinary figures are a lower-bound estimate,” Chainalysis said.