Full Breakdown
Iran's Cryptocurrency Activity Amid Internet Blackout
3/14/2026, 9:51:39 AM
Surge in Cryptocurrency Transactions During Internet Shutdown
Following the U.S.-Israeli strikes on February 28, 2025, Iran's Islamic Revolutionary Guard Corps (IRGC) reportedly continued its cryptocurrency operations despite a nationwide internet blackout. A cyber intelligence report by RAKIA indicates that hundreds of millions of dollars in cryptocurrency were transferred out of Iran during this period. Omri Raiter, CEO of RAKIA, noted a significant increase in funds leaving Iranian-linked crypto accounts, with transactions escalating from tens of millions to hundreds of millions shortly after the attacks. The report highlights that wallets associated with the IRGC received over $3 billion in cryptocurrency in 2025, contributing to an estimated $7.78 billion in total cryptocurrency activity in Iran that year.
Mechanisms of Evasion and Financial Infrastructure
RAKIA's analysis suggests that Iran has established a robust cryptocurrency infrastructure capable of functioning under heavy sanctions and communication disruptions. Raiter emphasized that the IRGC has been utilizing these crypto channels to finance proxy operations, effectively circumventing sanctions designed to restrict their financial activities. The U.S. Department of the Treasury had previously sanctioned cryptocurrency exchanges linked to Iranian actors, marking a significant step in targeting digital asset platforms rather than individual wallets.
Ongoing Investigations into Cryptocurrency Exchanges
The U.S. Justice Department is currently investigating whether the cryptocurrency exchange Binance facilitated sanctions evasion by Iranian networks. Reports indicate that Binance's internal investigation uncovered over $1 billion in transactions linked to networks funding Iran-backed groups. While Binance has denied direct transactions with sanctioned entities, the scrutiny reflects broader concerns regarding the role of cryptocurrency in Iran's financial operations.
Impact on Cryptocurrency Markets
Amid the ongoing conflict, cryptocurrency markets have shown resilience. Bitcoin's value increased by approximately 7% since the onset of hostilities, trading around $71,000. This performance contrasts with traditional markets, where the S&P 500 has seen a decline. Analysts attribute cryptocurrency's stability to its 24/7 trading capability, which allows it to operate independently of traditional banking hours. Other cryptocurrencies, such as Ethereum and Solana, have also experienced similar gains during this period.
Criticism and Concerns
Critics argue that the continued operation of cryptocurrency networks during the blackout raises concerns about the effectiveness of sanctions against Iran. Raiter pointed out that the simultaneous movement of funds for both proxy warfare and personal wealth protection suggests a coordinated effort among individuals connected to the IRGC. The Iranian mission to the United Nations declined to comment on these findings, leaving questions about the extent of the regime's reliance on cryptocurrency for financial maneuvering.
Conflicting Reports and Future Implications
While RAKIA's report indicates a significant flow of cryptocurrency out of Iran, discrepancies remain regarding the exact amounts and the specific networks involved. The ongoing investigations into exchanges like Binance may further illuminate the connections between cryptocurrency and Iran's financial strategies. As tensions in the region persist, the implications of these developments on both the cryptocurrency market and international sanctions will continue to unfold.
Verbatim Quotes
- "We've seen a surge of funds since the first hours of the war." — Omri Raiter, CEO of RAKIA
- "The proxy war funding and the personal capital flight are two sides of the same coin." — Omri Raiter, CEO of RAKIA
- "The Treasury will continue to pursue Iranian networks and corrupt elites who enrich themselves at the expense of the people." — Scott Bessent, U.S. Treasury Secretary
