Chainalysis claims that Iranians are increasingly withdrawing Bitcoin from exchanges and stashing it in their personal wallets, as the rial has plummeted 90% since 2018. The Islamic Revolutionary Guard Corps (IRGC) has dominated on-chain activity in Iran, accounting for over 50% of the total value realized in Q4 2025.
A Chainalysis study found that the Iranian crypto ecosystem grew faster in 2025, reaching over $7.78 billion. The IRGC’s on-chain activity also reached over $2 billion in 2024, jumping to over $3 billion in 2025.
Meanwhile, the most recent data reveal a significant shift in on-chain behavior during domestic and regional unrest. Many Iranians now view crypto as a form of resistance, offering flexibility and liquidity in an unstable economic environment.
Traditional assets are usually illiquid and subject to government control during major domestic instability, but Bitcoin’s censorship-resistant nature and self-custodial capability offer financial flexibility, according to Chainalysis.
IRGC’s crypto activity surges during major domestic events
Although Chainalysis did not break down the specific crypto-related transactions associated with the IRGC, it observed that addresses linked to the IRGC have steadily increased over time during major domestic and geopolitical events. The addresses include IRGC operatives working in Iran and facilitators in several countries, as well as networks that move funds and commodities to help Iran circumvent government or external sanctions.
Chainalysis observed that the IRGC’s on-chain activity spiked significantly during the January 2024 Kerman bombing at a memorial ceremony for Qasem Soleimani, a former Commander of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). The attack killed nearly 100 people who attended the memorial.
The 12-day war in June 2025 also saw a smaller but notable rise in the IRGC’s on-chain activity, as Bank Sepah, which the IRGC heavily uses, was hacked. The cyberattacks further targeted Nobitex, Iran’s leading crypto exchange, and state TV.
Meanwhile, the number of IRGC-linked addresses is expected to increase 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 larger parts of the IRGC’s laundering network are also being exposed as on-chain connections are uncovered within Iran’s web of regional militia proxies across the Middle East.
TRM Labs also reported on January 9 that two UK-incorporated exchanges, Zedxion and Zedcex, quietly processed over $1 billion for the IRGC. Babak Zanjani, a longtime Iranian sanctions-evasion financier, is suspected to be at the center of this operation. His direct connection to Zedcex shows that this is a continuation of a well-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 rose to nearly $620 million in 2024, but dropped to roughly $410 million in 2025.
Hedging demand rises as inflation skyrockets
According to Chainalysis, demand for hedging against a plummeting rial is on the rise amid inflation rates of 40% to 50%. For many Iranians, crypto represents a way out of a failing system controlled by a desperate regime.
The surge in BTC withdrawals from exchanges to personal wallets is the most telling scenario, according to Chainalysis. The blockchain intelligence firm observed substantial increases in both the number of transfers to personal wallets and the average daily transaction amount in U.S. dollars.
Chainalysis also noted that Bitcoin’s role during periods of crisis extends beyond capital preservation. BTC stashes become especially valuable when individuals need to operate under the government’s radar or flee.
The study also found that this pattern of increased BTC withdrawals during periods of heightened instability is a global trend observed under similar scenarios. Media reports suggest that people, including Iranians, tend to buy BTC at a markedly higher rate during periods of unrest that negatively affect local currencies.
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Source: https://www.cryptopolitan.com/iran-turns-to-btc-accumulation-rial/
