Iran’s IRGC Uses Crypto to Fund Proxies, Evade Sanctions

Iran's Use of Cryptocurrencies to Evade Sanctions and Fund Proxy Military Networks

  • Iran uses cryptocurrencies to bypass sanctions and fund proxy military groups.
  • The Islamic Revolutionary Guard Corps (IRGC) leverages Bitcoin mining and stablecoins for illicit finance.
  • In 2021, Iran accounted for 4.5% of global Bitcoin mining, generating up to $1 billion annually.
  • The U.S. sanctioned cryptocurrency wallets linked to Iran-backed military financing operations involving nearly $900 million.
  • Government agencies rely on advanced blockchain data tools to monitor and counter Iran’s crypto-based financial networks.

Iran has increasingly used cryptocurrencies as a means to evade international sanctions and finance proxy groups linked to the Islamic Revolutionary Guard Corps (IRGC). This developing strategy involves the use of stablecoins and Bitcoin mining, as geopolitical pressures intensify from the U.S., Israel, and potential new sanctions from the UK and EU.

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According to data, Iran accounted for 4.5% of global Bitcoin mining activity in 2021, generating around $1 billion in annual revenue. This revenue helped offset losses from trade embargoes that reduced Iran’s oil exports by 70%. Iranian authorities have redirected energy resources towards energy-heavy Bitcoin mining to sustain their financial operations.

In April 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned eight Tron blockchain addresses linked to Sa’id al-Jamal, a key financial operator for the Iran-backed Houthi group. Between November 2023 and November 2024, these wallets received close to $900 million in USDT stablecoins. These funds supported procurement of weapons and commodities from Russia for use in Yemen.

The involvement of wallets connected to Iran’s largest crypto exchange, Nobitex, was identified through chain data showing relationships to IRGC-linked financial activities and connections to groups like Hamas and Palestinian Islamic Jihad. This complex network spans multiple blockchains, exchanges, and Virtual Asset Service Providers (VASPs).

Government agencies now employ specialized blockchain data intelligence to identify and trace illicit financial flows in real time. By ingesting structured, normalized blockchain data, agencies can monitor on-chain activities across different cryptocurrencies and jurisdictions without relying on external platforms.

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Iran’s evolving crypto tactics pose ongoing challenges to global sanctions enforcement. These activities enable covert funding to support terrorism, espionage, and sabotage operations, requiring advanced data tools and international cooperation to effectively counteract. For further insights, visit this official statement.

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