Why $4.18 Billion Flew Out of Iran via Crypto in 2024

When the Iranian rial lost 90% of its value over six years, people didn’t just stop buying bread-they stopped trusting their own money. By 2024, that loss of trust turned into a flood: $4.18 billion in cryptocurrency left Iran. Not because of hackers or state secrets. But because ordinary people-teachers, shopkeepers, students, parents-were trying to save what little they had left.

It Wasn’t a Heist. It Was a Survival Strategy

Most people think crypto outflows from sanctioned countries mean drug money, ransomware, or government evasion. That’s not what happened in Iran. Chainalysis, the blockchain analytics firm that tracks these flows, found something different: ordinary citizens moving small amounts of Bitcoin and other digital assets out of the country, one transaction at a time. The average transfer? Under $1,000. These weren’t oligarchs. These were people converting their life savings into something that wouldn’t vanish overnight.

The rial’s collapse wasn’t gradual. Inflation hit 45% in 2024. Prices doubled in months. A kilogram of rice that cost 100,000 rials in January cost 220,000 by June. People watched their bank accounts evaporate. So they turned to Bitcoin-not because they believed in decentralization, but because it didn’t require a government to honor its value.

When War Hits, Crypto Spikes

The outflows didn’t happen evenly. They spiked like clockwork when conflict flared. On April 9 and 14, 2024, Israel bombed the Iranian embassy in Damascus. Iran responded with missile strikes. Within hours, Bitcoin transaction volumes from Iran jumped 300%. Another surge came in late September and early October, during renewed Iran-Israel strikes. Google Trends data showed searches for “Iran Israel” spiked at the exact same moments.

People weren’t speculating. They were running. When the sky looked like it might fall, they turned their rials into Bitcoin. Not to profit. To survive.

Bitcoin Was the Escape Route

You’d think stablecoins like USDT or USDC would be the go-to in hyperinflation. They’re pegged to the dollar, after all. But in Iran, Bitcoin dominated. Why? Because it was the only asset that couldn’t be easily frozen, blocked, or seized. Stablecoins still run through centralized exchanges-exchanges that could be pressured by U.S. sanctions. Bitcoin, once sent to a personal wallet, was invisible to banks and regulators.

Iranians used domestic platforms like Nobitex and Wallex to buy Bitcoin with rials, then moved it overseas through VPNs and proxy servers. When international exchanges started cutting off Iranian users in 2023 and 2024, people adapted. They used peer-to-peer marketplaces. They traded through friends abroad. They sent crypto to relatives in Turkey, Armenia, or the UAE-places where cashing out was easier.

The Government Played Both Sides

Here’s the twist: Iran’s own government didn’t stop crypto. It tried to control it. In 2024, the Central Bank forced local exchanges to hand over every user’s identity, transaction history, and IP address. They wanted to track who was moving money out. But they also encouraged mining-giving state-backed companies cheap electricity to run Bitcoin rigs. Why? Because they could sell the mined Bitcoin to foreign buyers for hard currency.

So while citizens were scrambling to get crypto out, the state was trying to get it in. It created a paradox: the same technology that let people escape the system was being used to fund it.

How It Compared to Other Sanctioned Nations

Russia also saw crypto surges after its 2022 invasion of Ukraine. But Russia’s outflows were bigger in absolute terms-and came from corporations and elites. Iran’s were smaller in total but far larger relative to its economy. In fact, Iran’s $4.18 billion in outflows was more than 5% of its entire GDP.

Venezuela had similar hyperinflation and crypto adoption. But Iran’s outflows were nearly twice as high as Venezuela’s peak. North Korea? They steal crypto through hacking. Iran? People just sold their jewelry, their cars, their savings-and turned them into Bitcoin.

The Tools People Used

Accessing crypto in Iran wasn’t easy. Internet speed was slow. Mobile payment apps were blocked. Banks refused to process crypto-related transfers. So people got creative.

- VPNs: Nearly every user relied on them to reach international exchanges. Some paid monthly for premium services like ExpressVPN or NordVPN.

- Telegram: Thousands of private channels shared tips on which exchanges still accepted Iranian users, how to bypass KYC, and where to find trusted P2P traders.

- Local meetups: In Tehran and Isfahan, small groups met in cafes to teach each other how to set up wallets and send transactions.

- Family networks: Iranian students abroad became unofficial crypto gateways. A student in Germany might receive Bitcoin from a parent, cash it out, and wire dollars home through informal channels.

Why Traditional Sanctions Failed

The U.S. and EU hoped sanctions would cripple Iran’s economy. They didn’t expect digital assets to become the new lifeline. Banks refused to process Iranian transfers. Credit cards were blocked. SWIFT was cut off. But Bitcoin? It doesn’t need banks. It doesn’t need permission.

Chainalysis reported that 26% of all sanctioned crypto activity in 2024 came from Iran. That’s more than Russia, Syria, and North Korea combined. And it wasn’t because Iran was better at hacking. It was because its people had no other choice.

What Happened After the Outflows?

By December 2024, Iran cracked down hard. Domestic exchanges were forced to shut down or comply with full identity tracking. The government launched its own digital currency, the Digital Rial, claiming it would “restore financial sovereignty.” But no one trusted it. Why? Because it was controlled by the same institutions that let the rial collapse.

Meanwhile, the outflows didn’t stop. They just got quieter. People moved smaller amounts. They used more decentralized platforms. They traded through intermediaries in Turkey and Dubai. The tools got more sophisticated. The need didn’t go away.

What This Means for the Rest of the World

Iran’s crypto exodus isn’t just an Iranian story. It’s a warning. When governments fail their people, people find new systems. Crypto isn’t the cause of economic collapse. It’s the symptom.

Other countries are watching. Venezuela. Lebanon. Argentina. Even Ukraine now uses crypto for emergency aid. If sanctions keep cutting off access to the global financial system, more nations will follow Iran’s path.

The real question isn’t whether crypto can bypass sanctions. It’s whether the world is ready to accept that when people lose faith in money, they’ll find another kind.

What Comes Next?

In 2025, Iran’s crypto outflows are expected to grow again. The rial is still falling. Inflation hasn’t cracked. The U.S. hasn’t eased sanctions. And Bitcoin? It’s still the only currency that doesn’t need a government to back it.

The next spike? Probably when the next missile strike hits. Or when the next price hike makes bread unaffordable. People won’t wait for policy changes. They’ll act. They always do.