SKN | Crypto Outflows From Iran Spike 700% Following U.S.-Israel Strikes

Key Points

• Crypto withdrawals from Nobitex surged more than 700% within minutes of US-Israeli airstrikes in Tehran.
• Elliptic traced many funds to foreign exchanges, suggesting potential capital flight.
• Internet connectivity in Iran reportedly dropped 99%, sharply curbing further crypto outflows.

Crypto withdrawals from Nobitex, Iran’s largest digital asset exchange, surged immediately after US and Israeli airstrikes struck Tehran.

According to blockchain analytics firm Elliptic, outflows from the platform rose more than 700% to over $500,000 within minutes of the first strikes. Within an hour, withdrawals approached $3 million.

Elliptic’s initial tracing indicated that a significant portion of the funds moved to foreign crypto exchanges, potentially signaling capital flight as regional tensions escalated.

The firm noted that crypto allows funds to be transferred internationally while avoiding scrutiny associated with the traditional global banking system.

Internet Blackout Slows Activity

TRM Labs reported that crypto outflows declined sharply after the initial spike, attributing the slowdown to sweeping internet restrictions imposed by Iranian authorities.

Internet connectivity across Iran reportedly dropped by approximately 99% shortly after the conflict intensified, limiting further transfers.

The airstrikes mark a sharp escalation as the US and Israel target Iran’s nuclear and missile infrastructure. Iran responded with retaliatory strikes in the region, amplifying geopolitical instability.

Crypto as a Financial Lifeline

Nobitex accounts for roughly 87% of Iran’s crypto transaction volume and processed approximately $7.2 billion in trades in 2025, serving more than 11 million users.

Digital assets have become a crucial financial tool for many Iranians navigating sanctions and a fragile domestic banking system.

In October, Ayandeh Bank collapsed after accumulating $5.1 billion in losses and nearly $3 billion in debt, affecting more than 42 million customers. Iran’s central bank has also warned that several other banks face dissolution risks without reform.

However, crypto infrastructure in the country has not been immune to setbacks. Nobitex suffered an $81 million hack in June, highlighting ongoing operational vulnerabilities.

Capital Flight or Crisis Response?

The surge in crypto withdrawals underscores how digital assets can serve as a rapid-response financial escape valve during geopolitical crises.

While the total dollar value of withdrawals remains modest by global standards, the timing and velocity of the spike suggest heightened sensitivity among local investors seeking to protect capital amid escalating conflict