Iran Crypto Transactions Fall 11% After Conflict With Israel and Stablecoin Blacklist: Report

Highlights:

• Crypto flows in Iran fell as conflict and hacks reduced the confidence of investors.
• Nobitex lost 90M in a hack by Predatory Sparrow, and Tether froze wallets linked to Iranian users.
• The policy response and Iran crypto transactions outlook show continued reliance on stablecoins despite instability.

The crypto market in Iran experienced a major downturn this year ,with geopolitical and monetary shocks negatively affecting trading activity. According to the data provided by TRM Labs, flows declined to $3.7 billion in the first six months of this year, a fall of 11% against the same period last year. The biggest decline was in June and July, when there was a 12-day war with Israel as nuclear talks broke down.

Whoa 😬 Iran’s crypto scene took a serious hit in 2025. According to TRM Labs, crypto flows dropped to just $3.7 billion, and it’s not hard to see why. Between the Nobitex exchange hack, Tether freezing assets, and rising geopolitical tensions, trust in the system is crumbling.… pic.twitter.com/vqpL7HEp12

— Seven Crypto 🐋 (@SevenWinse) August 27, 2025

The fight was characterized by widespread power outages that limited access to trading websites and slowed down transactions. TRM Labs blamed these outages on Israeli cyberattacks and military activities.

June Hack Deepens Market Uncertainty

The Iranian company Nobitex, which accounts for approximately 87% of cryptocurrency transactions in Iran, was hacked to the tune of $90 million on June 18. An organization calling itself Predatory Sparrow took credit, further compounding the backlash. The attack revealed flaws in the exchange and compelled many customers to withdraw money. According to TRM Labs, outflows spiked over 150% during the week leading up to the attack.

The hack caused a liquidity disruption and a lag in transaction velocity within the home market. A large portion of users transferred their funds to risky foreign exchanges with a few Know Your Customer procedures. The breach of security created custodial risk and forced traders to diversify beyond Iran-based platforms.

The stablecoin provider Tether blocked 42 Iranian user wallets in July. The freeze was the biggest enforcement action against addresses related to Iran, according to TRM Labs. The decision removed crucial liquidity from the market and restricted access to widely used stablecoins. This action prompted Iranian exchanges, state-backed channels, and influencers to encourage users to migrate from TRON-based USDT to Dai on Polygon. The coordinated effort aimed to preserve stablecoin access under difficult conditions.

Tether Freezes $700M USDT Linked to Iran Ahead of U.S. Regulatory Crackdown

Tether has frozen 112 wallets holding $700 million USDT on Ethereum and Tron, mainly tied to Iranian users and the Nobitex exchange. The move follows heightened U.S. regulatory scrutiny and Middle East… pic.twitter.com/SJtTdgbtMN

— Cryptemic News (@news_cryptemic) June 26, 2025

Policy Response and Iran Crypto Transactions Outlook

Iran still considers crypto important to its economy despite such setbacks. Stablecoins are used by many Iranians to keep their savings safe against inflation and purchase sanctioned commodities. Businesses also depend on digital assets to import drone parts, advanced chips, and other important materials, which are supplied by Chinese sellers. TRM Labs pointed out that illicit traffic amounts to about 0.5% of total flows, emphasizing the predominance of normal transactions.

To address the uncertainty in the market, the government added new regulations to tax speculative assets, such as cryptocurrency. The new law on speculation and profiteering levies taxes on crypto trades, gold, property, and forex. The government is expecting the tax structure will bring revenue and provide greater control over the asset.

TRM Labs noted that despite ongoing crypto use, trust in domestic crypto exchanges is low. Nobitex still leads in transaction amounts, but trust has been dented following the June hack. Most traders have moved to offshore markets in order to minimize security threats and liquidity concerns.