Iran’s Crypto Transactions Plunge 11% After Nobitex Exchange Hack
Iran's crypto ecosystem takes an 11% hit following major security breach at Nobitex—just when digital assets were gaining traction as sanctions workarounds.
Security First—Always
The hack exposes lingering vulnerabilities in platforms operating under regulatory gray zones. Users pulled funds fast—proving once again that self-custody beats trusting third parties with your keys.
Market Impact & Trust Erosion
Transaction volumes don't lie. That 11% drop signals more than panic—it's a credibility crisis. Regional adoption faces yet another hurdle thanks to centralized exchange failures.
Finance's Ironic Twist
Traditional bankers probably smirked at this one—crypto's 'unhackable' narrative takes another blow while fiat systems quietly process billions daily without making headlines. The revolution will be audited—or hacked.
Iran’s Nobitex suffered a $900 million attack in June
According to TRM Labs’ analysis, the June 2025 flare-up between Iran and Israel stirred a wave of withdrawals, starting with Iran’s largest exchange. Outflows from Nobitex spiked over 150% in the week leading to the conflict, as investors braced for escalation following a surge in hostilities. Much of the funds were shifted to overseas exchanges, payment providers with limited KYC thresholds, and high-risk operators lacking KYC controls.
Moreover, during the conflict, on June 18, Predatory Sparrow, an Israel-linked hacking outfit, attacked the exchange, stealing $90 million. Beyond the stolen funds, the leaked source code exposed Nobitex’s role in advancing state surveillance while shielding VIP clients and the platform’s user protections and cybersecurity gaps.
In the aftermath, Iran introduced overnight trading restrictions, seemingly to rein in crypto activity. The hack also triggered a dramatic contraction in activity, with inbound transactions to Nobitex shrinking 70% year-on-year, amid mounting user distrust of Iranian platforms. Previously inactive Bitcoin mining–linked wallets also started transferring funds, which were later pooled into Nobitex’s new hot wallet.
Analysts believe the attack on the exchange was politically motivated, especially since the platform has been linked to regime-aligned operations. Additionally, Predatory Sparrow moved the stolen funds to vanity addresses, explicitly referencing the IRGC and hinting at political intent.
Tether froze several Iranian entities
In July, Tether also executed its largest freeze to date of Iran-linked funds, blocking 42 crypto addresses, over half of which were heavily tied to Nobitex. Several wallets had histories of transfers involving Nobitex and IRGC-affiliated addresses, which the Israeli counter-terror finance authority had flagged. However, aside from their ties to sanctioned entities, the ultimate ownership of these addresses has not been verified.
The freeze, nonetheless, caused Iranian exchanges, influencers, and regime-backed channels to launch a push for users to exit TRON-based USDT holdings and migrate funds into DAI on Polygon. Proponents suggested switching to a faster and more affordable network WOULD ensure Iranians and domestic exchanges retained stablecoin liquidity in the face of mounting sanctions.
This August, Iran officially passed new legislation, the Law on Taxation of Speculation and Profiteering, which, for the first time, will impose capital gains tax on cryptocurrency. Although enforcement will come in stages, the government is leaning towards increasing regulation for assets: crypto, gold, real estate, and forex.
In related news, Tether recently froze $27M of USDT associated with the sanctioned Russian crypto exchange Garantex. Garantex suspended trading and withdrawal operations as a result.
The US had previously blacklisted Garantex in April 2022 under the Department of the Treasury’s Office of Foreign Assets Control (OFAC). Most of Garantex’s activities centered on Federation Tower and Saint Petersburg, Russia, according to OFAC, locations previously associated with other sanctioned digital asset platforms.
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