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Iran’s central bank accumulated at least $507 million in USDT to evade international sanctions, using the stablecoin to support its currency and settle trade outside the traditional banking system, according to a blockchain analysis published Thursday.
According to blockchain analytics firm Elliptic, the activity took place primarily between 2024 and mid-2025, involved Iran’s largest crypto exchange Nobitex, and highlights both the appeal and the risks of using stablecoins outside the traditional banking system.
The investigation by Elliptic describes a sophisticated example of Iran sanctions evasion, centered on the acquisition of at least $507 million in the US dollar-backed stablecoin USDT by the Central Bank of Iran.
By mapping wallet infrastructure using leaked documents and on-chain data, the firm outlined how a sanctioned state actor leveraged crypto rails to operate beyond conventional financial channels.
Elliptic characterized the system as a “shadow financial layer” built on top of public blockchains, allowing Iranian authorities to access dollar-equivalent liquidity despite being largely cut off from the global banking network.
“The report provides a detailed, real-world case study of how a sanctioned state is using digital assets to create a ‘shadow financial layer’ outside the traditional banking system,” — Elliptic, blockchain analytics firm.
For regulators and financial institutions, the findings underscore how Iran sanctions evasion is evolving in response to tighter enforcement, with stablecoins offering speed, accessibility and global reach that traditional intermediaries cannot.
According to Elliptic, Iran sanctions evasion through USDT served two main purposes: domestic foreign-exchange intervention and sanctions-resistant trade settlement. Until June 2025, on-chain data shows the CBI repeatedly transferring large volumes of USDT to Nobitex, Iran’s largest cryptocurrency exchange.
Elliptic suggests these transfers were aimed at injecting synthetic US dollar liquidity into local markets to stabilize the Iranian rial during a period of severe economic pressure. At the same time, authorities accumulated USDT reserves to support what the report describes as “digital off-book eurodollar accounts.”
“This shadow infrastructure enabled a closed-loop trade settlement system,” — Elliptic, in its report.
Under this model, import payments and export revenues could be settled using a digital dollar equivalent, limiting exposure to asset seizure or payment disruption through correspondent banks. In effect, Iran sanctions evasion relied on recreating key functions of the international financial system without relying on it directly.
The approach reflects how stablecoins, while privately issued, can mimic state currency functions when adopted at scale by sovereign actors.
Elliptic’s report notes that Iran sanctions evasion tactics shifted sharply in June 2025 following a high-profile hack of Nobitex. A pro-Israel group that claimed responsibility for the attack publicly labelled the exchange a “sanctions violation tool,” prompting heightened scrutiny and security concerns.
“The platform was labelled a ‘sanctions violation tool,’” — Pro-Israel hacking group, in its public claim.
After the incident, the Central Bank of Iran reportedly stopped routing funds through Nobitex. Instead, it began moving assets through cross-chain bridges and decentralized exchanges, a move Elliptic says was designed to reduce visibility and counter emerging operational risks.
This rapid adjustment highlights the adaptive nature of Iran sanctions evasion strategies. As specific platforms or methods become exposed, state actors can pivot quickly within the crypto ecosystem, leveraging its composability and global reach.
Despite its intent to bypass restrictions, the activity was not invisible. Elliptic emphasized that Iran sanctions evasion using stablecoins still leaves an on-chain footprint. Public blockchains allow analytics firms to trace transaction flows even when traditional intermediaries are removed.
The report also underscores the enforcement power held by stablecoin issuers themselves. On June 15, 2025, Tether blacklisted several wallets linked to the CBI, freezing roughly $37 million in USDT.
“Stablecoins operate on public blockchains, allowing analytics firms to trace transaction flows,” — Elliptic, blockchain analytics firm.
Unlike decentralized assets such as Bitcoin, USDT and similar tokens are issued by centralized entities capable of disabling wallets and halting transfers.
This creates what Elliptic describes as a double-edged sword for sanctioned actors: stablecoins can enable Iran sanctions evasion in the short term, but they also introduce centralized points of control.
For global financial institutions, the case serves as a cautionary example. As digital assets become more embedded in cross-border finance, compliance risks expand alongside innovation.
The combination of blockchain transparency, issuer intervention and third-party analytics means that even state-level efforts at Iran sanctions evasion can be monitored and, at times, disrupted.
