Overview

• Total Iranian-linked crypto flows fell 11% year over year to $3.7 billion from January through July, with June inflows down over 50% and July volumes sliding more than 76%.
• Nobitex still handled more than 87% of transactions even after a June 18 breach drained about $90 million, damaging trust as outflows spiked and inbound transfers slumped.
• Tether’s July freeze of 42 Iranian-linked wallets, described as its largest to date, stripped stablecoin liquidity and pushed users to offshore platforms and alternatives like DAI on Polygon.
• Outbound activity stayed relatively steady, underscoring continued capital flight and the use of crypto to procure items such as drone components and AI hardware.
• Blockchain probes questioned Nobitex’s transparency and TRM pointed to crypto-funded espionage cases, while a new August capital gains tax added fresh regulatory friction.