According to a report by blockchain analysis firm TRM Labs, inflows to Iranian cryptocurrency platforms have decreased due to the breakdown of nuclear negotiations with Israel, hacks of Iran's largest crypto exchange, and the blacklisting of major stablecoins.
From January to July 2025, Iran's cryptocurrency flow reached $3.7 billion, a decrease of 11% compared to the same period last year. TRM Labs noted in a report on Tuesday that the decline was most pronounced in June and July.
"This decline is related to the breakdown of nuclear negotiations, the 12-day conflict with Israel that began on June 13, and power outages caused by Israeli actions and regime dominance."
The hack of Nobitex in June significantly impacted cryptocurrency flows in Iran, as this exchange accounted for 87% of the country's trading volume.
High inflation and sanctions have led many Iranians to rely on stablecoins as a means of value storage.
The hack of Nobitex is a significant reason for the turmoil in Iranian cryptocurrency.
Due to the attack by pro-Israel group Predatory Sparrow on June 18, Nobitex's security vulnerabilities caused a collapse of trust. Although the exchange continues to lead in trading volume, the incident disrupted liquidity and affected transaction processing speed.
Tensions between Iran and Israel have further exacerbated capital outflow, with some funds flowing to high-risk overseas exchanges that lack customer identification verification.
Tether's blacklist slows down liquidity.
Stablecoin issuer Tether blacklisted 42 wallets related to Iran, marking the largest ever asset freeze, impacting trading liquidity.
The incidents forced Iranian exchanges, influencers, and official channels to encourage users to transfer USDT assets to Dai on Polygon.
Many Iranians still view cryptocurrency as a way to combat inflation, reflecting Iran's reliance on stablecoins.
Iran continues to use cryptocurrency for political purposes.
Iran continues to purchase sensitive goods, such as AI hardware and drone components, using cryptocurrency to evade sanctions. Additionally, it is used to pay spies abroad. However, illegal crypto transactions account for less than 1% of the total.