đ Crypto as a Geopolitical Tool
đŽđˇ Iran: Circumventing Sanctions
Iranians have increasingly turned to crypto due to economic instability, soaring inflation (40â50%), and a plummeting rial. In 2024, crypto outflows surged to about $4.18âŻbillion, up ~70% yearâonâyear .
Authorities tightly control the space: rial-to-crypto trades were blocked in DecâŻ2024, then partially reopened in JanâŻ2025 via gated APIs, allowing government oversight of user data .
The Islamic Revolutionary Guard Corps (IRGC) reportedly uses crypto for sanction evasion and funding covert activities .
âď¸ IsraelâIran Cyberwar
Israel-linked hackers, notably the group Predatory Sparrow (Gonjeshke Darande), launched major cyberattacks targeting Iranâs crypto infrastructure, including Nobitex, the nationâs top exchange. Over $90âŻmillion in assetsâlikely including Bitcoin and Ethereumâwere stolen and âburnedâ as a political statement .
The attack also hit Bank Sepah, causing financial disruptions .
âď¸ Military Escalation & Internet Control
In midâJune 2025, Israel struck Iranian nuclear facilities. Consequently, oil prices spiked ~11% and Bitcoin dropped from ââŻ$109K to ~$103K .
Iran responded by enforcing a near total internet blackout (~97% usage drop) to stifle external information, effectively isolating citizens from crypto and financial systems .
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đ Market Reactions & Crypto Volatility
Bitcoin saw rapid swings: dipping to ~$98K postâU.S. strikes before recovering to ~$101K, trading within a descending technical channel ($100K support, $107K resistance) .
In broader conflict phases (e.g., Apr 2024 IranâIsrael flareâups), major cryptos like BTC, ETH, SOL dropped 4â6%, liquidations reached hundreds of millions, yet markets rebounded soon after .