Flows into Iranian crypto trading platforms dropped in 2025 due to failed nuclear talks with Israel, a $90 million hack on Iran’s largest exchange, and stablecoin blacklisting. Iranian crypto flows reached $3.7 billion from January to July, an 11% decrease from last year, with the worst decline in June and July.

The downturn started after the $90 million hack on Nobitex, which handles 87% of Iran’s crypto transactions. Many Iranians use US dollar stablecoins to combat inflation and evade sanctions. Confidence in Iran-based VASPs declined following the security breach by Predatory Sparrow amid high tensions with Israel.

Heightened Iran-Israel tensions led to a surge of outflows to foreign exchanges with minimal KYC checks. Tether’s blacklisting of 42 crypto addresses with USDT balances further impacted flows. Iranian exchanges and influencers urged users to move funds from TRON-based USDT to Dai on Polygon.

Iran continues to use crypto for political objectives, such as purchasing sensitive goods from Chinese chip resellers to bypass sanctions. The country also uses crypto for espionage payments. Despite this, illicit crypto transactions in Iran represent less than 1% of total volume.

Read more at Cointelegraph: Iranian Crypto Flows Drop On Israel Conflict, Nobitex Hack