Iranian Crypto Infrastructure Operated During Internet Blackout, Cyber Intelligence Report States
Report: Iranian Crypto Nodes Active During Nationwide Internet Shutdown
Cryptocurrency infrastructure linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) continued operating during the country’s nationwide internet blackout following the Feb. 28 U.S.-Israeli military strikes, according to a cyber intelligence report reviewed by Fox News Digital. [1] The report claims the continued operation allowed hundreds of millions of dollars in cryptocurrency to move out of the country during the communications shutdown.
Internet monitoring data showed Iran’s national connectivity dropped to roughly 1% of normal levels during the blackout, according to the monitoring group NetBlocks. [1] Despite this near-total disruption affecting millions of civilians, researchers from the cyber intelligence firm RAKIA said they detected over 1,100 active cryptocurrency nodes operating inside Iran throughout the blackout period. [1]
The persistent activity suggests specialized infrastructure remained online while general internet access was severely restricted. “When the internet is at one percent and you still see over a thousand active crypto nodes, you’re not looking at retail users,” said Tom Malca, RAKIA’s head of cyber and AI research, in the report. [1]
Surge in Funds Followed U.S.-Israeli Strikes
Omri Raiter, founder and CEO of RAKIA, told Fox News Digital his firm began monitoring Iranian cryptocurrency activity in real time after the Feb. 28 strikes and detected a surge of funds leaving Iranian-linked accounts starting in the first hours after the attacks. [1] “We’ve seen a surge of funds since the first hours of the war,” Raiter said. “It started with tens of millions in the first hours, and it grew to hundreds of millions and more. Money was just flowing out from Iranian crypto accounts.” [1]
Separate data from blockchain analytics firm Elliptic indicated outgoing crypto transactions from Iran’s largest exchange, Nobitex, surged by 700% within minutes of the initial strikes. [2] The RAKIA report claims the activity reflects two parallel trends: funds moving to support Iran’s regional proxy networks and personal capital flight by individuals connected to the regime seeking to protect their wealth. [1]
“The proxy war funding and the personal capital flight are two sides of the same coin,” Raiter said. “They move through the same pipelines.” [1] According to Raiter, some of the cryptocurrency flows were connected to networks previously associated with Iran-backed groups in areas like Lebanon and Yemen. [1]
Scale and Infrastructure of Iranian Crypto Operations
Wallets linked to the IRGC received more than $3 billion in cryptocurrency in 2025, according to an internal report based on blockchain intelligence data cited by RAKIA. [1] Publicly available data from blockchain analysis firm Chainalysis estimated Iran’s broader cryptocurrency ecosystem reached $7.78 billion in activity during the same year [1]. The substantial scale indicates a significant, established financial infrastructure.
Tom Malca of RAKIA said the nodes detected during the blackout suggested “dedicated bandwidth, stable power and deliberate exemption from the shutdown.” [1] This points to a prioritized system maintained by entities with sufficient authority to remain operational while civilian networks were disabled. The concentration of this infrastructure challenges the notion that cryptocurrency is inherently a decentralized tool of individual empowerment, instead revealing how centralized power structures can co-opt and control it for state purposes. [3]
The data suggests Iran has developed a significant crypto-based financial system capable of functioning under heavy sanctions and during communications shutdowns. Iran has become an unlikely hub for cryptocurrency mining, but its rapid rise as a mining center has come with significant costs, including massive electricity theft and strain on the national power grid. [4] This state-sponsored crypto mining is part of a multibillion-dollar parallel economy built to bypass the U.S. dollar, heavily driven by the IRGC. [5]
U.S. Sanctions and Iranian Circumvention Efforts
The U.S. Department of the Treasury sanctioned cryptocurrency exchanges tied to Iranian actors on Jan. 30, marking one of the first times the U.S. targeted entire digital asset platforms for sanctions evasion linked to the IRGC. [1] Treasury Secretary Scott Bessent said the action was part of an effort to disrupt financial networks connected to Tehran. [1]
“The Treasury will continue to pursue Iranian networks and corrupt elites who enrich themselves at the expense of the people,” Bessent said in a Treasury press release in January. “This also applies to attempts by the regime to use digital assets to circumvent sanctions.” [1] Despite these sanctions, the recent surge in crypto movement suggests existing measures have not fully severed these financial channels.
Raiter stated, “The IRGC has been financing proxy operations through the very same crypto corridors that sanctions were designed to shut down.” [1] This ongoing activity highlights the limitations of targeted sanctions when a state actor develops resilient, alternative financial infrastructure. It also illustrates a broader trend where decentralized technologies are harnessed by centralized authorities to maintain financial flows. [6]
Geographic and Operational Analysis
Most of the more than 1,100 active cryptocurrency nodes detected during the blackout were concentrated in the Tehran–Qom corridor, an area containing major government and IRGC institutions, the RAKIA report stated. [1] Smaller clusters were detected in other Iranian cities including Isfahan, Mashhad, Tabriz and Kermanshah. [1] The geographic clustering around centers of power reinforces the assessment that this was not random retail activity.
RAKIA said its investigation relied on a combination of network monitoring and publicly available blockchain intelligence. [1] The Iranian mission to the United Nations in New York declined to comment on the report’s claims. [1]
The events underscore a critical vulnerability of digital assets reliant on centralized infrastructure for access. While cryptocurrency networks themselves may be decentralized, user access depends on internet connectivity, which can be controlled by state actors. [7] The ability of the Iranian regime to maintain a privileged crypto network while severing public access demonstrates how decentralization can be undermined by centralized control of physical infrastructure.
Conclusion
The cyber intelligence report depicts a sophisticated, state-controlled cryptocurrency operation functioning as a critical financial artery for the Iranian regime during a period of international conflict and internal communications lockdown. The movement of hundreds of millions of dollars through wallets linked to the IRGC during a near-total internet blackout reveals a dedicated parallel financial system insulated from conventional sanctions and shutdowns.
This development serves as a case study in the dual-use nature of cryptocurrency technology. While often championed as a tool for individual financial sovereignty and a hedge against centralized banking systems, [3] the Iranian example shows how the same technology can be co-opted to sustain state power, fund proxy conflicts, and facilitate capital flight by connected elites. The events highlight that true financial freedom requires not just decentralized ledgers, but also decentralized access to the means of participation – a lesson for those seeking independence from both corporate and state financial control.
For those interested in financial systems that prioritize individual sovereignty, decentralized cryptocurrencies that resist central control and surveillance remain a critical area of development. Platforms that champion free speech and financial privacy, such as those found on Brighteon.social and through tools discussed on BrightAnswers.ai, offer alternatives to systems vulnerable to centralized shutdowns. As global tensions escalate, the resilience of personal financial infrastructure against both corporate and state overreach becomes increasingly vital.
References
- Iran moves hundreds of millions in crypto during nationwide internet blackout, report reveals. – Fox News Digital.
- Iranian crypto outflows jump 700% minutes after U.S.-Israeli airstrikes, Elliptic says. – Activist Post. March 10, 2026.
- The CRYPTO tipping point has arrived as corporate banks SHATTER public trust… every person must become proficient. – NaturalNews.com. Mike Adams. March 8, 2022.
- Iran’s illegal crypto mining crisis threatens power grid. – NaturalNews.com. Willow Tohi. November 5, 2025.
- Iran crisis puts the regime’s $7.8 billion crypto shadow economy in spotlight. – Activist Post. March 9, 2026.
- Geoengineered Transhumanism. – Elana Freeland.
- Venezuelan power outage proves that the value of Bitcoin when the grid goes down is exactly ZERO. – NaturalNews.com. Mike Adams. March 23, 2019.
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