Iran Moves Hundreds of Millions in Cryptocurrency During Nationwide Internet Blackout, Report Reveals
By Efrat Lachter, Fox News | Published March 13, 2026, 2:36 PM EDT
A recent cyber intelligence report reviewed by Fox News Digital reveals that Iran managed to transfer hundreds of millions of dollars in cryptocurrency during its nationwide internet blackout following U.S.-Israeli strikes on its territory. The ability to execute these significant crypto transactions amid a communications shutdown highlights Tehran’s sophisticated financial infrastructure and raises concerns about how the regime funds proxy operations and safeguards personal wealth.
Cryptocurrency Activity Continues Despite Blackout
Following the strikes on February 28 that targeted Iranian leadership, the Islamic Revolutionary Guard Corps (IRGC), naval vessels, and oil infrastructure, Iran imposed a nationwide internet blackout. Nevertheless, cryptocurrency activity linked to the IRGC not only persisted but surged substantially.
Omri Raiter, founder and CEO of RAKIA, a cyber intelligence firm specializing in data analysis for government and security agencies, explained to Fox News Digital that his team monitored Iranian-linked cryptocurrency accounts in real time immediately after the attacks. "We’ve seen a surge of funds since the first hours of the war," Raiter said. "It started with tens of millions in the first hours, and it grew to hundreds of millions and more. Money was just flowing out from Iranian crypto accounts."
Scale of Iran’s Crypto Financial Network
RAKIA’s internal report, which incorporates blockchain intelligence data and publicly available information from blockchain analytics firm Chainalysis, identified that wallets connected to the IRGC received more than $3 billion in cryptocurrency during 2025. Chainalysis estimated that Iran’s overall cryptocurrency ecosystem reached almost $7.78 billion in activity that same year.
This financial activity suggests that Iran has developed a robust digital asset infrastructure capable of functioning during stringent sanctions and communications disruptions. Such resilience allows Tehran to move funds to support its extensive network of regional proxies actively engaged in proxy conflicts across the Middle East.
Dual Purposes: Funding Proxies and Evading Sanctions
The investigation found that the crypto transactions during the blackout served two primary, overlapping purposes. Firstly, they funneled resources to Iran-backed militias and proxy groups operating in countries such as Iraq, Syria, and Lebanon, which continue to threaten U.S. interests and regional stability. Secondly, funds were moved by individuals connected to the regime aiming to protect their personal wealth amid growing international pressure and instability in Iran itself.
Raiter summarized this dual use by stating: "The proxy war funding and the personal capital flight are two sides of the same coin. They move through the same pipelines."
U.S. Response to Crypto Sanctions Evasion
The U.S. Treasury Department has intensified efforts to combat Iran’s use of digital assets to circumvent sanctions. On January 30, the Treasury sanctioned several cryptocurrency exchanges linked to Iranian actors, marking a significant move by targeting entire digital asset platforms rather than individual wallets for sanctions evasion.
Treasury Secretary Scott Bessent emphasized this approach, noting in a January press release that the Treasury would continue targeting Iranian networks and corrupt elites enriching themselves at the expense of the Iranian people. "This also applies to attempts by the regime to use digital assets to circumvent sanctions," Bessent stated.
Impact on Regional Conflict and Global Markets
The cyber and military strikes against Iran, coupled with the discovery of extensive crypto transfers during a communications blackout, underscore the deepening conflict across the region. Iran’s reliance on cryptocurrency to fund proxy groups illustrates the evolving tactics the regime employs to resist sanctions and maintain influence in the Middle East.
These developments also reverberate through global markets, particularly in the oil and energy sectors, which are sensitive to disruptions along critical points such as the Strait of Hormuz. As tensions escalate, the international community watches closely, balancing sanctions enforcement with efforts to stabilize the region.
For continued coverage of the U.S.-Iran conflict and analysis on cryptocurrency’s role in global sanctions, follow Fox News.