Iran has developed a sprawling cryptocurrency network that moves billions of dollars through domestic exchanges and foreign financial channels, helping Tehran circumvent international sanctions and funnel money to the Islamic Revolutionary Guard Corps, according to a new report.
The report, published by Dr. Udi Levy of the Amit Institute for Terrorism and Intelligence Research, examines the evolution of terrorist financing from the September 11, 2001 attacks through the increasingly technology-driven financial landscape of 2026.
According to the report, Iran’s domestic cryptocurrency market handled approximately $9.9 billion in transactions during 2025, with much of the activity concentrated among four major local exchanges.
The largest, Nobitex, reportedly serves more than 11 million users. In June 2026, the U.S. Treasury imposed sweeping sanctions on Iranian cryptocurrency exchanges after determining that they had helped Iran’s central bank obtain hundreds of millions of dollars in stablecoins to support the rial and finance the IRGC.
Because Iranian exchanges are largely isolated from the international financial system, the report says they rely on foreign shadow networks to provide liquidity and move funds abroad.
Among the most significant is Seychelles-registered CoinEx, which the report says has served as a major channel for Iranian foreign liquidity, handling more than $3.84 billion connected to Iran since 2019.
The report also points to exchanges including Zedcex and Zedxion, registered in Britain, which were sanctioned in January 2026 after allegedly processing transactions worth tens of billions of dollars for the IRGC.
International cryptocurrency giant Binance also reportedly facilitated more than $1.7 billion in transfers from accounts linked to Iranian financing networks, while more than 2,000 accounts physically located in Iran were able to operate despite sanctions.
Cryptocurrency, however, represents only one component of what the report describes as a hybrid financing system.
Terrorist organizations including Hamas and Hezbollah continue to rely on currency exchanges, informal hawala networks and charities that collect donations under the guise of humanitarian assistance. Criminal enterprises involving drug trafficking, counterfeit goods and cyber fraud also provide additional sources and channels for financing.
Looking ahead, the report warns of efforts by Iran, Russia and China to develop international financial systems that reduce dependence on the U.S. dollar and the SWIFT banking network, including platforms such as CIPS and the mBridge project.
The report also warns that artificial intelligence could increasingly be used to automate the fragmentation and movement of funds in ways designed to evade banking surveillance systems, while sanctioned actors may continue turning to harder-to-trace physical assets such as cash and gold.
Levy argues that combating terrorist financing can no longer rely solely on freezing accounts, sanctioning individuals or blocking individual banks. Instead, he calls for a coordinated strategy combining intelligence, regulation, technology, law enforcement and international cooperation to disrupt the broader financial networks that allow terrorist organizations and their state sponsors to convert money into operational capabilities.
(YWN World Headquarters – NYC)
