Iran’s cryptocurrency market experienced a significant downturn in the first half of 2025, with several factors contributing to the decline.
A Major Exchange Hack
A massive security breach at Nobitex, a major Iranian cryptocurrency exchange, in June 2025, stole around $90 million. This led to a huge loss of confidence. Traders rushed to move their money elsewhere, causing outflows to surge by over 150% in the week leading up to the attack. The hackers even used vanity addresses linked to the Islamic Revolutionary Guard Corps (IRGC).
The Aftermath: Trust Eroded and Transactions Plummet
Following the hack, inbound transfers to Nobitex plummeted by approximately 70%. Even dormant Bitcoin wallets linked to mining operations were reactivated, only to send funds to a new, seemingly compromised hot wallet. The government tried to ease the panic with overnight trading restrictions, but many users had already moved their crypto to foreign platforms with less stringent identity verification.
Liquidity Crisis and Regulatory Actions
Adding to the chaos, Tether froze 42 wallets associated with Iran in July, significantly impacting the availability of stablecoins within the country. Many of these wallets were linked to Nobitex or addresses flagged with IRGC connections. This action, along with the freezing of $27 million in USDT linked to the sanctioned Russian exchange Garantex, further tightened the liquidity squeeze.
External Factors Exacerbate the Problem
The crypto market slump coincided with increased regional tensions, including a 12-day conflict with Israel and stalled nuclear talks. These events led to widespread power outages, crippling mining operations and disrupting trading activities. The combination of political instability and infrastructure problems pushed many to move their assets out of the country.
New Taxes Add to the Pressure
In August, Iran introduced a new law taxing capital gains on cryptocurrencies, gold, real estate, and forex. While full enforcement is phased in, the added tax burden, along with the hacks and freezes, is likely to discourage further investment and activity in the Iranian crypto market.
