Tether freeze, espionage payments deepen Iran cryptocurrency market crisis

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Tether freeze espionage payments

Nobitex dominates but loses influence

Nobitex, Iran’s largest crypto exchange, continued to dominate the market in 2025. TRM data shows that Nobitex processed over 87% of Iran-related transaction volume, with $2 billion out of $3 billion moving through the TRON network, primarily in TRC-20 USDT and TRX tokens.

However, TRM researchers noted that capital outflows from Nobitex surged 150% in the week leading up to the Iran–Israel conflict, as users sought safer platforms. Many funds were redirected to global exchanges with minimal KYC enforcement or to high-risk, non-KYC platforms.

The systemic risks were underscored by Nobitex’s $90 million hack in June, attributed to the pro-Israeli group Predatory Sparrow.

TRM’s analysis linked on-chain flows in Nobitex to Amir Hossein Nikain Ravari, a figure tied to the IRGC, and to Gaza Now, a Hamas-affiliated outlet sanctioned after the October 2023 attacks on Israel. Investigators also found Nobitex code designed for unauthorized surveillance, further eroding public trust in the exchange.

Adding to Tehran’s challenges, Tether froze 42 wallets linked to Iranian entities, the largest such action to date. More than half of these wallets were heavily tied to Nobitex, while others connected to IRGC-linked structures previously identified by Israeli authorities.

“Tether’s freeze disrupted established settlement channels, forcing both retail and institutional users to rapidly diversify their stablecoin strategies,” TRM Labs reported.

In response, government channels and some domestic exchanges urged users to abandon USDT in favor of DAI on Polygon, citing lower transaction costs and resistance to sanctions-related freezes.

TRM emphasized that although Iranian hackers continue to use crypto to bypass sanctions and procure critical goods, illicit activity on Iranian exchanges accounted for only 0.9% of total volume, roughly in line with global averages.

Iranians also increasingly rely on crypto as a hedge against inflation and financial instability despite waning confidence in domestic platforms.

“For many everyday citizens, cryptocurrency remains a vital store of value in the face of currency devaluation and limited access to international finance,” TRM stated.

Meanwhile, underground services like Novin Verify are expanding, offering fake IDs and KYC circumvention tools for sanctioned users seeking access to foreign platforms.

TRM also reported the first documented cases of crypto being used to pay foreign operatives for espionage, signaling the growing role of digital assets in Iran’s geopolitical strategy.

As we wrote, U.S. airstrikes on Iranian nuclear sites trigger crypto market panic

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