Outgoing cryptocurrency transactions from Iran’s largest exchange, Nobitex, surged 700% within minutes of U.S.-Israeli airstrikes on Tehran over the weekend, according to blockchain analytics firm Elliptic. The spike suggests a rapid outflow of capital as Iranians sought to move funds offshore, potentially bypassing banking controls.
The surge in outflows occurred immediately after the strikes, Elliptic reported Monday, with funds appearing to move to overseas exchanges that have historically received significant inflows from Iran. Dr. Tom Robinson, Elliptic’s co-founder and chief scientist, stated the activity “potentially represents capital flight from Iran that bypasses the traditional banking system.”
The disruption to Iran’s crypto market was compounded by a near-total internet shutdown, reducing connectivity to just 4% of normal levels, according to NetBlocks. This followed similar restrictions imposed during protests in January 2026 and a 12-day conflict with Israel in June 2025.
While the initial surge indicated a rush to move funds, analysis from TRM Labs suggests the market did not experience a massive capital flight. Instead, the firm identified a pattern of contraction consistent with infrastructure restrictions and regulatory measures. Nobitex recorded an increase of approximately $3 million in flows on February 28th compared to the previous day, but TRM Labs attributes this to internal transfers between “hot” (online) and “cold” (offline) wallets, rather than actual trading activity – essentially securing reserves rather than facilitating new transactions.
Several Iranian exchanges took emergency measures in response to the instability. Wallex suspended all cryptocurrency withdrawals, while Aban Tether froze both crypto and rial withdrawals. Ramzinex halted deposits and withdrawals, assuring users funds were secured in cold storage. Tabdeal limited withdrawals to two daily batches with delays of up to 24 hours, and Bitpin issued guidance advising users to avoid impulsive decisions and prepare for potential connectivity disruptions.
The Iranian crypto market has grown significantly in recent years, with Nobitex registering over 11 million users and $7.2 billion in trading volume in 2025. For many Iranians, cryptocurrencies represent a vital channel for preserving savings and accessing dollars, given the rial’s 96% devaluation and the country’s isolation from the international banking system due to sanctions.
However, the sector also has ties to the Islamic Revolutionary Guard Corps (IRGC). The U.S. Treasury Department sanctioned two UK-registered cryptocurrency platforms, Zedcex and Zedxion, in January 2026 for allegedly providing financial infrastructure to the IRGC. TRM Labs data indicated that 56% of Zedcex’s transaction volume was linked to IRGC-affiliated entities, rising to 87% in 2024. These platforms were reportedly connected to Babak Morteza Zanjani, an Iranian businessman previously convicted of embezzling billions in oil revenue.
Chainalysis analysis revealed that over $10 million in USDT flowed from Zedcex’s infrastructure to wallets controlled by Said al-Jamal, a financier designated by the U.S. Treasury for supporting the IRGC and Houthi networks in Yemen. Chainalysis estimates that addresses linked to the IRGC accounted for more than 50% of incoming crypto assets to Iran in the last quarter of 2025, totaling over $3 billion for the year. Elliptic documented that Iran’s central bank accumulated at least $507 million in USDT during 2025, acquired with Emirati dirhams, as a strategy to circumvent the global banking system.
According to Ari Redbord, global policy director at TRM Labs, “Iran has operated for years an economy in the shadows that, in part, has used cryptocurrencies to evade sanctions, even through sophisticated offshore infrastructure.” He added that the current environment is “a real-time stress test” of that infrastructure and the regime’s ability to utilize it.
