For business
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
AML certification
How industry players can get up-to-date knowledge and professional certification.
AML certification
How industry players can get up-to-date knowledge and professional certification.
Comprehensive transaction analytics that helps to build graphs and trace funds.
Graph
Travel rule
(soon)
For personal use
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Getting money back
Services are focused on tracking
and recovering crypto assets.
and recovering crypto assets.
Getting money back
Services are focused on tracking
and recovering crypto assets.
and recovering crypto assets.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Portfolio tracker
Information about all assets and risk assessment in one place.
Portfolio tracker
Information about all assets and risk assessment in one place.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
Для себя
Для Бизнеса
Travel rule
(Cкоро)
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Table of Contents:
Iran’s Attempt to Trade Weapons for Cryptocurrency
Mindex’s Role and the Strategic Use of Crypto
How Sanctions and International Law Block Crypto-Based Arms Trading
Three Structural Risks: Freezes, U.S. Pressure, and Counterparty Exposure
Blockchain Traceability and the Risks Facing Retail Users
Iran’s Attempt to Trade Weapons for Cryptocurrency
Mindex’s Role and the Strategic Use of Crypto
How Sanctions and International Law Block Crypto-Based Arms Trading
Three Structural Risks: Freezes, U.S. Pressure, and Counterparty Exposure
Blockchain Traceability and the Risks Facing Retail Users
The year 2026 began with an unexpected statement from Iranian authorities claiming the country is ready to sell missiles and drones in exchange for cryptocurrency. The BitOK team has examined the idea, and here we deliver an expert opinion on why this plan is highly unlikely to work.
What Exactly Is Iran Offering?
What Exactly Is Iran Offering?
Mindex, the state-run export center under Iran’s Ministry of Defense, has proposed supplying foreign clients with weapons paid for in cryptocurrencies, via barter deals, or in Iranian rials. The offer reportedly includes:
- Shahed drones
- Emad missiles
- Shahid Soleimani–class warships
- Air defense systems and other military hardware
The primary goal is to bypass Western sanctions and reduce dependence on traditional financial channels, which can be blocked by the United States, the European Union, or the United Kingdom.
This marks the first publicly documented case of a government officially allowing payment for strategic weapons using digital currencies.
This marks the first publicly documented case of a government officially allowing payment for strategic weapons using digital currencies.
Why Iran Wants Crypto
Why Iran Wants Crypto
According to sanctions.io, Iran ranks second globally in the number of sanctions imposed against it, trailing only Russia.
Fig. 1: The chart shows the countries with the highest number of sanctions, according to sanctions.io.
Visa and Mastercard do not operate in Iran. While the country has its own domestic banking cards, these systems are ineffective for cross-border transactions. In this environment, decentralized cryptocurrencies appear to be a convenient alternative.
Iranian authorities have gone from outright bans to regulation in just a few years. In 2019, crypto trading was prohibited. By 2024, the government had reversed course, opting to regulate the sector and use cryptocurrency as a tool to mitigate sanctions pressure.
Iranian authorities have gone from outright bans to regulation in just a few years. In 2019, crypto trading was prohibited. By 2024, the government had reversed course, opting to regulate the sector and use cryptocurrency as a tool to mitigate sanctions pressure.
Fig. 2: The map shows Iran’s position in the global Bitcoin hashrate.
The country accounts for less than 1% of the network’s total hashrate. Source: Hashrate Index.
As a result, Iran has developed its own crypto infrastructure, including domestic exchanges. These trading platforms have effectively become part of a state-level scheme to use cryptocurrency for sanctions circumvention.
Interesting fact: In August 2025, the hacker group Gonjeshke Darande (“Predatory Sparrow”), widely believed to be linked to Israel, claimed it had breached Iran’s largest crypto exchange, Nobitex. Blockchain analysts estimate that more than $90 million worth of cryptocurrency was withdrawn. The funds were deliberately destroyed, making the attack appear less like a profit-driven hack and more like a political statement against an adversarial state.
As a result, Iran has developed its own crypto infrastructure, including domestic exchanges. These trading platforms have effectively become part of a state-level scheme to use cryptocurrency for sanctions circumvention.
Interesting fact: In August 2025, the hacker group Gonjeshke Darande (“Predatory Sparrow”), widely believed to be linked to Israel, claimed it had breached Iran’s largest crypto exchange, Nobitex. Blockchain analysts estimate that more than $90 million worth of cryptocurrency was withdrawn. The funds were deliberately destroyed, making the attack appear less like a profit-driven hack and more like a political statement against an adversarial state.
Who Iran Wants to Sell Weapons To
Who Iran Wants to Sell Weapons To
Mindex claims to work with 35 countries, though it has not disclosed which ones. It is reasonable to assume that these are states facing heavy sanctions themselves, including Russia and North Korea.
If Iran were aiming to sell weapons globally, cryptocurrency might look like a universal payment solution. However, several hidden obstacles make the initiative difficult to execute in early 2026.
If Iran were aiming to sell weapons globally, cryptocurrency might look like a universal payment solution. However, several hidden obstacles make the initiative difficult to execute in early 2026.
Is It Legal to Sell Weapons for Cryptocurrency?
Is It Legal to Sell Weapons for Cryptocurrency?
The short answer is no.
Virtually all major sanctions regimes — including those enforced by the U.S., the EU, the UK, and the UN — explicitly prohibit:
Virtually all major sanctions regimes — including those enforced by the U.S., the EU, the UK, and the UN — explicitly prohibit:
- the sale of weapons to sanctioned entities;
- any form of financing for such transactions, including cryptocurrency payments.
From the standpoint of international law, settling arms deals in crypto still violates sanctions frameworks. Given Iran’s sanctioned status, selling weapons for digital assets could be interpreted as illegal enrichment or even as providing material support for terrorism.
The Political Context
The Political Context
Iran’s leadership is under severe pressure. In late 2025, mass protests erupted across the country. As of this writing, at least 540 people have reportedly been killed.
The protests were triggered by the collapse of the Iranian rial, driven by a deep economic crisis. Inflation surged, basic goods became unaffordable for many citizens, and living standards declined sharply.
Falling living conditions and growing dissatisfaction with government policies ultimately sparked widespread unrest.
U.S. President Donald Trump publicly voiced support for the Iranian people, expressing solidarity with protesters and stating that America was “ready to help.”
The protests were triggered by the collapse of the Iranian rial, driven by a deep economic crisis. Inflation surged, basic goods became unaffordable for many citizens, and living standards declined sharply.
Falling living conditions and growing dissatisfaction with government policies ultimately sparked widespread unrest.
U.S. President Donald Trump publicly voiced support for the Iranian people, expressing solidarity with protesters and stating that America was “ready to help.”
Why Iran Is Unlikely to Pull This Off
Why Iran Is Unlikely to Pull This Off
The crypto industry already has examples of successful sanctions circumvention. One prominent case is the ruble-backed stablecoin a7a5. According to Artemis, the token outpaced dollar-denominated stablecoins in growth throughout 2025.
Unlike USDT, a7a5 operates under a different control and jurisdictional structure, reducing the likelihood of transaction freezes. Iran has no comparable alternative. As a result, it is likely that any arms deals would rely on the most liquid option available — dollar-backed stablecoins.
Based on this assumption, and considering Iran’s broader circumstances, three major problems make large-scale weapons sales via crypto highly impractical.
Unlike USDT, a7a5 operates under a different control and jurisdictional structure, reducing the likelihood of transaction freezes. Iran has no comparable alternative. As a result, it is likely that any arms deals would rely on the most liquid option available — dollar-backed stablecoins.
Based on this assumption, and considering Iran’s broader circumstances, three major problems make large-scale weapons sales via crypto highly impractical.
1. High Risk of Cryptocurrency Freezes
1. High Risk of Cryptocurrency Freezes
Tether, the issuer of USDT, actively freezes addresses linked to illegal activity, as do other stablecoin issuers. On January 11, 2026 alone, tokens worth $182 million were frozen. According to available context, some of these actions may be related to flows connected with Venezuela. Whale Alert was the first to report the freeze. Similar measures could also be applied to crypto assets associated with Iran amid sanctions pressure.
Analysts at BitOK examined transactions within the wallets. Here is what they highlighted:
Analysts at BitOK examined transactions within the wallets. Here is what they highlighted:
- The wallets mostly contain a small number of large transfers.
- The fund flow patterns show transfers made in large chunks, meaning the payments themselves were sizable.
- These wallets resemble end-point wallets, as earlier in the transaction chain there were wallets receiving inflows of $500,000–$1 million.
- The origins also trace back to Binance hot wallets or Binance deposit addresses.
Weapons sales typically involve large transfers that stand out against a backdrop of smaller transactions, making them easy to detect and monitor.
Following Iran’s public statements about selling weapons for crypto, the country has come under heightened scrutiny. No crypto company wants to be associated with a state carrying such legal and reputational risk. As a result, stablecoin issuers and other token providers are likely to aggressively freeze any wallets or transactions connected to Mindex-related deals.
For more details on how Tether freezes suspicious addresses, see BitOK’s dedicated report.
Interesting fact: In 2023, analysts at TRM Labs concluded that Iran favored the TRON network. At the time of writing, there is no public information indicating whether those preferences have changed.
Following Iran’s public statements about selling weapons for crypto, the country has come under heightened scrutiny. No crypto company wants to be associated with a state carrying such legal and reputational risk. As a result, stablecoin issuers and other token providers are likely to aggressively freeze any wallets or transactions connected to Mindex-related deals.
For more details on how Tether freezes suspicious addresses, see BitOK’s dedicated report.
Interesting fact: In 2023, analysts at TRM Labs concluded that Iran favored the TRON network. At the time of writing, there is no public information indicating whether those preferences have changed.
2. No One Wants to Cross Trump
2. No One Wants to Cross Trump
Trump has warned Tehran that if Iranian authorities intensify repression against protesters, Washington may respond. The use of military force against Iranian security structures has not been ruled out.
Given recent developments — including the U.S. special forces operation against Venezuelan President Nicolas Maduro and the interception of Russian oil tankers — Trump’s warnings are widely perceived as credible.
Iranian authorities have attempted to keep the situation under wraps, but reports of casualties continue to surface despite nationwide internet shutdowns.
Playing the role of peacemaker is not Trump’s only motivation for focusing on Iran. He has long shown interest in countries with large oil reserves. Many analysts believe that access to oil resources played a key role in the overthrow of Maduro’s regime by U.S. forces. Coincidentally, Iran ranks fourth globally in proven oil reserves.
Given recent developments — including the U.S. special forces operation against Venezuelan President Nicolas Maduro and the interception of Russian oil tankers — Trump’s warnings are widely perceived as credible.
Iranian authorities have attempted to keep the situation under wraps, but reports of casualties continue to surface despite nationwide internet shutdowns.
Playing the role of peacemaker is not Trump’s only motivation for focusing on Iran. He has long shown interest in countries with large oil reserves. Many analysts believe that access to oil resources played a key role in the overthrow of Maduro’s regime by U.S. forces. Coincidentally, Iran ranks fourth globally in proven oil reserves.
Fig. 3: The list shows the top 10 countries by proven oil reserves. Source: Worldometers.
If Iran’s regime collapses under the pressure of protests, the proposal to sell weapons for cryptocurrency would likely disappear along with the country’s former leadership.
3. Loss of Geopolitical Standing
3. Loss of Geopolitical Standing
The third issue logically follows from the first two. Exposing gray-market arms deals settled in cryptocurrency could seriously damage the buyer. Countries with relatively clean international reputations are unlikely to take such risks. Meanwhile, Iran’s fellow members of the global sanctions list already face heavy regulatory pressure, and further escalation would be undesirable.
Important note: The global circulation of cryptocurrency creates risks for ordinary users. Assets that have passed through wallets linked to the Iranian regime could eventually end up in your wallet. Interacting with “tainted” crypto can result in frozen funds. BitOK’s tools help identify such risks and protect both users and their assets.
Important note: The global circulation of cryptocurrency creates risks for ordinary users. Assets that have passed through wallets linked to the Iranian regime could eventually end up in your wallet. Interacting with “tainted” crypto can result in frozen funds. BitOK’s tools help identify such risks and protect both users and their assets.
Conclusion
Conclusion
Iran’s plan to sell weapons for cryptocurrency appears ambitious on the surface. In reality, it faces legal barriers, high freezing risks, political instability, and a lack of credible buyers. With Iran firmly on Trump’s radar, combined with sanctions pressure and the unattractive nature of the offer, this initiative is unlikely to move beyond rhetoric.
