The Central Bank (CBI) of Iran bought $507 million of Tether’s $USDT stablecoin with the primary purpose of manipulating foreign exchange markets and bolstering the value of the rial, which recently traded at 1.4 million for one U.S. dollar, according to blockchain analytics firm Elliptic.
Elliptic said it uncovered the purchases through two leaked documents that allowed researchers to map out the central bank’s wallet infrastructure, “revealing a systematic accumulation of $USDT totaling at least half a billion dollars,” a report by Tom Robinson said. “It indicates a sophisticated strategy to bypass the global banking system.”
The United Nations imposed sanctions on Iran in 2025, reinstating those related to the country’s nuclear program that had been lifted in 2015. It’s not the only country to resort to crypto to circumvent restrictions. In early 2025, blockchain analytics provider Chainalysis reported that U.S.-sanctioned countries had received nearly $16 billion in digital assets the year before.
“We’re seeing increased use of U.S. dollar stablecoins for sanctions evasion and mitigation, particularly involving Iran, Russia and North Korea,” Robinson said. “These repressive regimes are attempting to exploit crypto to prop up their economies.”
Elliptic cannot, however, confirm the central bank’s current position.
“We can’t tell whether the Central Bank of Iran still holds any $USDT,” Robinson said. “It was mostly sent to Nobitex and we don’t have visibility beyond that, although it appears likely that it was sold for rials.” Nobitex, an Iranian crypto exchange, was hacked in 2025 by a group suspected to be linked to Israel.
Even if the central bank still holds the $USDT, it may not be able to use it. Tether has the ability to freeze accounts and works with law enforcement in line with U.S. sanctions guidance.
“We work closely with law enforcement globally to identify and promptly upon request freeze assets to prevent further movement whenever they are identified to be in connection to illegal activity or illicit actors.” a spokesperson told CoinDesk.
The spokesperson was unable to comment directly on the topic of $USDT held by the CBI or other Iranian government entities.
In addition to the central bank, it seems as though regular Iranians are seeking the perceived safety of cryptocurrencies as unrest disrupts the country and the economy collapses.
Since Dec. 28, street demonstrations against the government have rocked a number of Iranian cities amid a crisis marked by rampant inflation and the collapse of the currency, which recently traded at 1.4 million for one U.S. dollar.
Local purchases of bitcoin $BTC$89,109.82 have climbed and Chainalysis said it observed a notable increase in blockchain transactions withdrawing $BTC from Iranian exchanges to personal wallets until Jan. 8, when the country imposed an internet blackout.
Apart from using $USDT to purchase rial on foreign exchanges in an attempt to slow down its collapse, Robinson said, “the CBI also appears to be constructing a ‘sanctions-proof’ banking mechanism that replicates the utility of international dollar accounts.”
By “treating $USDT as ‘digital off-book eurodollar accounts’, the regime creates a shadow financial layer capable of holding U.S. dollar value outside the reach of US authorities,” he said.
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