Chainalysis reports that Iranians are increasingly withdrawing Bitcoin from exchanges and storing it in personal wallets as the national currency, the rial, has experienced a significant decline, plummeting 90% since 2018. The Islamic Revolutionary Guard Corps (IRGC) has emerged as a dominant force in on-chain cryptocurrency activity within Iran, accounting for over 50% of the total value realized in the fourth quarter of 2025.
A study conducted by Chainalysis indicates that the Iranian cryptocurrency ecosystem experienced accelerated growth in 2025, reaching a total value exceeding $7.78 billion. The IRGC's on-chain activity also saw a substantial increase, rising from over $2 billion in 2024 to more than $3 billion in 2025.
Recent data highlights a notable shift in on-chain behavior coinciding with periods of domestic and regional unrest. Many Iranians now perceive cryptocurrency as a form of resistance, offering much-needed flexibility and liquidity in an increasingly unstable economic landscape.
While traditional assets often become illiquid and subject to government control during significant domestic instability, Bitcoin's censorship-resistant nature and self-custodial capabilities provide individuals with enhanced financial flexibility, according to Chainalysis.
IRGC's Crypto Activity Surges During Major Domestic Events
Although Chainalysis did not provide a detailed breakdown of specific crypto-related transactions linked to the IRGC, the firm observed a consistent increase in activity from addresses associated with the IRGC over time, particularly during major domestic and geopolitical events. These identified addresses include IRGC operatives working within Iran, facilitators in various countries, and networks involved in moving funds and commodities to help Iran circumvent government or international sanctions.
Chainalysis noted a significant spike in the IRGC's on-chain activity during the January 2024 bombing in Kerman, which occurred at a memorial ceremony for Qasem Soleimani, a former Commander of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). The attack resulted in the deaths of nearly 100 individuals attending the memorial.
The 12-day conflict in June 2025 also witnessed a less pronounced but still notable rise in the IRGC's on-chain activity, occurring around the time Bank Sepah, a financial institution heavily utilized by the IRGC, was subjected to a cyberattack. These cyberattacks also targeted Nobitex, Iran's primary cryptocurrency exchange, and state television.
Furthermore, the number of IRGC-linked addresses is anticipated to grow as more affiliated wallets are publicly disclosed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Israel’s National Bureau for Counter Terror Financing (NBCTF). The broader scope of the IRGC's money laundering network is also being exposed as on-chain connections are uncovered within Iran's network of regional militia proxies across the Middle East.
TRM Labs also reported on January 9 that two UK-incorporated exchanges, Zedxion and Zedcex, had discreetly processed over $1 billion in transactions for the IRGC. Babak Zanjani, a long-standing financier involved in Iran's sanctions evasion efforts, is suspected to be at the core of this operation. His direct link to Zedcex suggests a continuation of an established state-aligned financial network.
According to the TRM Labs report, approximately $23.7 million flowed through IRGC-associated Zedcex addresses in 2023. The IRGC-linked flows escalated to nearly $620 million in 2024, before experiencing a decrease to approximately $410 million in 2025.
Hedging Demand Rises as Inflation Skyrockets
Chainalysis data indicates a growing demand for hedging against the depreciating rial, occurring amidst inflation rates ranging from 40% to 50%. For a significant portion of the Iranian population, cryptocurrency is viewed as a potential escape from a failing economic system controlled by what they perceive as a desperate regime.
The observed surge in Bitcoin withdrawals from exchanges to personal wallets is considered a particularly telling indicator, according to Chainalysis. The blockchain intelligence firm has documented substantial increases in both the volume of transfers to personal wallets and the average daily transaction amount in U.S. dollars.
Chainalysis further notes that Bitcoin's utility during periods of crisis extends beyond mere capital preservation. Stashes of BTC become especially valuable when individuals need to operate discreetly, avoiding government surveillance, or when planning to flee.
The study also revealed that this pattern of increased Bitcoin withdrawals during times of heightened instability is a global trend, observed in similar circumstances worldwide. Media reports suggest that individuals, including those in Iran, tend to purchase Bitcoin at a significantly higher rate during periods of unrest that adversely affect local currencies.