Iran crypto transactions fall 11% following Nobitex hack
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Crypto flows into Iran shrank to $3.7 billion in the first seven months of 2025, an 11% drop compared with 2024 levels. The decline particularly accelerated post-April, with June seeing a 50% contraction compared with last year and July slumping by 76%. The losses coincided with the collapse of nuclear talks, a brief but intense 12-day conflict with Israel in mid-June, a time when Israeli attacks and regime-initiated disruptions contributed to extensive electricity cuts across Iran. Adding to the pressure, trust in Iran-based VASPs eroded following the June 18 breach of Nobitex. As earlier reported by Cryptopolitan, the exchange platform lost about $90 million in the attack. Around the same time, Tether also froze a record number of Iran-linked wallets, stripping the market of liquidity and stalling settlement channels. 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…
