Cryptocurrency withdrawals from Iran surge 700% following joint strikes by US and Israel
Cryptocurrency withdrawals from Iran experienced a dramatic increase of more than 700% immediately following Saturday's joint US-Israel military operation, with further transfers restricted due to nationwide internet disruptions.
The largest cryptocurrency exchange operating in Iran witnessed a dramatic increase in digital asset withdrawals mere minutes after the United States and Israel initiated military strikes on Tehran this past Saturday. Nevertheless, widespread disruptions to internet services throughout the country prevented further capital movement.
According to a statement released on Monday by Elliptic, cryptocurrency withdrawals from the Nobitex platform experienced an extraordinary jump exceeding 700%, climbing beyond $500,000 in value immediately following the commencement of the initial airstrikes. Data visualization included in their report demonstrated that withdrawal activity peaked at approximately $3 million during a single one-hour period later the same day.
According to Elliptic's analysis, the dramatic increase in withdrawal activity "potentially represents capital flight from Iran," with preliminary blockchain tracing revealing that a substantial portion of these digital assets were transferred to cryptocurrency exchanges located outside the country.
"This allows funds to be moved out of Iran while avoiding some of the scrutiny of the global banking system," Elliptic said.
Nevertheless, cryptocurrency withdrawal volumes from Nobitex experienced a precipitous decline in the days following Saturday's events, a phenomenon that TRM Labs, another blockchain forensics firm, linked to aggressive internet shutdown measures implemented by Iranian authorities.
According to reports, Iran's overall internet connectivity experienced a decline of roughly 99% in the immediate aftermath of the conflict's escalation, TRM noted.
TRM also opposed Elliptic's conclusion that capital flight is leaving Iran, stating:
"It appears that the country's crypto ecosystem is not showing signs of acceleration or capital flight, but instead experiencing a downturn in both transactions and volume as the regime enforces strict internet blackouts."
The substantial cryptocurrency withdrawal activity occurs against the backdrop of ongoing efforts by the United States and Israel to dismantle the existing Iranian government and eliminate its nuclear weapons development capabilities and ballistic missile infrastructure. The Iranian government retaliated by conducting its own aerial bombardments targeting neighboring nations, further destabilizing an already volatile region.
As Iran's predominant cryptocurrency trading platform, Nobitex commands approximately 87% of all cryptocurrency transaction activity throughout the nation. Throughout 2025, the exchange facilitated roughly $7.2 billion worth of cryptocurrency trades serving a user base exceeding 11 million individuals.
Millions of Iranians impacted by recent banking collapse
The Iranian population continues to turn toward cryptocurrency as a reliable mechanism for preserving wealth and facilitating financial transfers, offering a workaround to both Iran's unstable traditional banking infrastructure and the comprehensive economic sanctions that have been levied against the nation.
This past October witnessed the financial collapse of Ayandeh Bank, one of Iran's most prominent privately-held banking institutions, which declared bankruptcy following the accumulation of $5.1 billion in financial losses and approaching $3 billion in outstanding liabilities, directly affecting a customer base of more than 42 million people.
Last year, Iran's central banking authority issued warnings that eight additional domestic financial institutions were facing potential closure unless they undertook significant structural reforms.
The cryptocurrency exchange sector in Iran has not been immune to difficulties either, as demonstrated when Nobitex fell victim to a significant security breach in June that resulted in losses totaling $81 million.