Iran's Secret Crypto Empire Moves Billions to Fund Terrorism Despite Sanctions
A new report by Dr. Udi Levy from the Amit Terrorism and Intelligence Research Institute reveals that Iran's local cryptocurrency market handled nearly $9.9 billion in 2025. The majority of this activity was concentrated in four main domestic exchanges, led by Nobitex, which serves over 11 million users. In June 2026, the U.S. Treasury imposed sweeping sanctions on these exchanges after determining they helped Iran's Central Bank secure hundreds of millions in stablecoins to support the rial's value and finance the Islamic Revolutionary Guard Corps (IRGC).
Because these exchanges are isolated from the global financial system, they rely on foreign shadow networks to liquidate funds. Notably, Seychelles-registered exchange CoinEx has become Iran's largest foreign cash flow channel, moving over $3.84 billion since 2019. UK-registered exchanges Zedcex and Zedxion also processed tens of billions of dollars for the IRGC before facing sanctions in January 2026. Additionally, Binance facilitated transfers exceeding $1.7 billion linked to Iranian terror financing networks and allowed over 2,000 Iranian accounts to operate freely despite sanctions.
Crypto assets are only one element of a hybrid terror financing system. Groups like Hamas and Hezbollah continue to use money exchange offices, anonymous hawala networks, and charity organizations that collect small donations under humanitarian pretexts. These terror networks also maintain close ties to organized crime through drug trafficking, counterfeit goods, and cyber fraud. Geopolitically, Iran provides state sponsorship, and terror networks operate in regions where shell companies and money changers circumvent banking compliance.
Looking ahead, efforts are underway to build alternative international financial systems bypassing the U.S. dollar and SWIFT, led by China, Russia, and Iran through platforms like CIPS and the mBridge project. Terror groups and their state backers are increasingly using artificial intelligence to automate fund splitting and evade banking surveillance, while also reverting to anonymous physical assets like gold and cash.
Dr. Levy emphasizes that combating terror financing requires more than freezing accounts or sanction lists. A comprehensive approach is needed, recognizing terror financing as a strategic infrastructure involving a global network of states, banks, exchanges, charities, shell companies, and professionals. Only through combined intelligence, regulation, technology, enforcement, and international cooperation can these networks' operational space be reduced and their ability to convert capital into operational, political, and ideological power be disrupted.
