Iran’s Central Bank Using Vast Quantities of Cryptocurrency Championed by Nigel Farage, Report Reveals
Iran’s central bank has reportedly been engaging in a large-scale accumulation of cryptocurrency, specifically Tether stablecoins, a digital currency notably promoted by the UK political figure Nigel Farage. This development, uncovered by crypto analytics firm Elliptic, points to a strategic move by Iran to circumvent international sanctions and stabilize its economy.
Systematic Accumulation of Tether Stablecoins
Elliptic’s investigation has traced over $507 million (approximately £377 million) worth of Tether (USDT) passing through accounts strongly believed to be controlled by Iran’s central bank. Tether is a type of stablecoin pegged to the US dollar, making it a digital asset easily convertible into traditional currency, which appeals to entities seeking to bypass conventional banking systems.
The report describes this activity as a “systematic accumulation,” suggesting a calculated effort by Iranian authorities to use these digital coins either to facilitate international trade or to bolster the Iranian rial amid mounting economic pressure from global sanctions.
Background: Sanctions and Cryptocurrency Use
Iran has been subjected to extensive US, UN, and other international sanctions, which severely restrict its ability to engage in global trade, access foreign currency, and use the traditional banking network. Faced with these challenges, Iranian officials and affiliates appear to be increasingly turning to cryptocurrencies like Tether for financial transactions.
Last year, Israel exposed numerous cryptocurrency accounts linked to Iran’s Revolutionary Guards, highlighting the regime’s ongoing use of digital currencies. Interestingly, an Iranian businessman inadvertently revealed two crypto account numbers supposedly linked to the central bank, which enabled Elliptic’s researchers to connect around 50 accounts to Iranian authorities.
Nigel Farage’s Involvement and Response
Tether has been publicly championed by Nigel Farage, leader of Reform UK, who has advocated for the broader adoption of stablecoins within the UK financial system. Farage has criticized Bank of England governor Andrew Bailey for restricting cryptocurrency innovations and urged the UK to capitalize on global trends by becoming a “global trading centre” for crypto assets under proper regulation.
In September, Farage disclosed plans to discuss Tether with Bailey, emphasizing Tether’s potential market value at around $500 billion and its critical role in transitioning money between traditional currencies and cryptocurrencies.
Reform UK’s major donor, Christopher Harborne—a significant Tether shareholder—has denied involvement in any illicit activities connected to Iranian use of Tether, calling such accusations “baseless drivel.” Reform UK stated that donations strictly comply with electoral laws and emphasized their continued support for the Iranian people’s fight for freedom.
Tether’s Position and Enforcement Efforts
A Tether spokesperson did not comment directly on the central bank’s alleged use of its stablecoins. However, the company reiterated a strong zero-tolerance policy toward criminal uses of its products and claimed adherence to US sanctions regulations. The spokesperson noted that Tether has cooperated with over 310 law enforcement agencies across 62 countries and has frozen more than $3.4 billion in assets linked to criminal activity.
While Tether has reportedly frozen the accounts associated with Iran’s Revolutionary Guards identified by Israel, most accounts tied to Iran’s central bank remain active according to the report.
Implications and Controversy
The revelations raise significant questions about the potential unintended consequences of promoting cryptocurrencies like Tether, particularly in authoritarian regimes implicated in human rights abuses and violent crackdowns. Iran’s brutal suppression of nationwide protests, which has resulted in thousands of deaths, contrasts sharply with Farage’s enthusiastic endorsement of the digital currency.
This situation spotlights the complexities of regulating cryptocurrencies globally and the risks they pose when used to evade economic sanctions. It also underscores the political and ethical dilemmas facing public figures and companies involved in the crypto sector.
For further information or to share insights related to this developing story, contact Tom Burgis at the Guardian via email or secure messaging options available through the Guardian app.
This article is based on the report published by The Guardian on January 21, 2026.