Why $4.18 Billion Flew Out of Iran in Crypto in 2024
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See how much value you would have preserved by converting Iranian rial to Bitcoin during the 2024 economic crisis. Based on real data from Iran's hyperinflation period where $1 USD equaled 750,000 rials at its worst.
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Why this matters: During Iran's 2024 hyperinflation, ordinary citizens sent $4.18 billion in crypto to preserve wealth when the rial lost 90% of its value. This calculator shows what 100,000 rials would be worth in Bitcoin during the crisis.
Important note: Bitcoin has volatility, but during Iran's crisis it served as a reliable store of value compared to the rapidly collapsing rial.
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, Bitcoin became the only thing that didn’t vanish overnight. That’s why $4.18 billion in cryptocurrency left Iran that year-not because of hackers or criminals, but because ordinary families were trying to save what little they had left.
It Wasn’t About Hacking. It Was About Survival
Most people think crypto outflows from sanctioned countries are about laundering money or evading sanctions. That’s not what happened in Iran. Chainalysis, the blockchain analytics firm, found that 87% of the $4.18 billion in outflows came from individual users sending under $1,000 at a time. These weren’t oligarchs moving cash through shell companies. These were teachers, shopkeepers, students-people who watched their life savings turn worthless and decided to do something about it. They didn’t open bank accounts. They didn’t call brokers. They used WhatsApp, Telegram, and VPNs to buy Bitcoin on local exchanges like Nobitex and Wallex, then sent it abroad. One user on a Persian crypto forum wrote: "I sold my car. Bought 0.3 BTC. My daughter’s tuition is paid. No bank would touch it. This was the only way."When War Hits, Crypto Spikes
The timing wasn’t random. Every time tensions rose between Iran and Israel, crypto outflows jumped. On April 9, 2024, Israeli airstrikes hit the Iranian embassy in Damascus. Two days later, Iran launched retaliatory drone attacks. Within 48 hours, Bitcoin outflows from Iran spiked 180%. Another surge hit in late September, right after Iranian missile strikes and Israeli counterstrikes. Google Trends shows searches for "Iran Israel" peaked exactly when blockchain data showed money leaving the country. The rial’s black-market exchange rate swung wildly during those same days. One day, $1 = 600,000 rials. The next, $1 = 750,000. People didn’t wait for official news. They watched the price of Bitcoin on local exchanges-it was the only real-time indicator of value left.Bitcoin, Not Stablecoins
You’d think people would use USDT or USDC to avoid volatility. But they didn’t. Bitcoin made up 68% of all outflows. Why? Because in Iran, Bitcoin isn’t seen as a speculative asset. It’s seen as digital gold. People trust it more than any stablecoin. Why? Because stablecoins rely on centralized companies-Tether, Circle-that can freeze accounts or cut off access under U.S. pressure. Bitcoin doesn’t need permission. One Iranian engineer explained it this way: "USDT is a promise. Bitcoin is proof. I can hold it in my own wallet. No one can take it from me unless they break into my house."
How They Did It-Without Banks
Iran’s banking system is cut off from the global financial network. SWIFT? Blocked. Western Union? Impossible. Even PayPal doesn’t work. So Iranians built their own system. They used:- VPN services to bypass government internet blocks
- Local exchanges like Ramzinex and Nobitex, which operated until late 2024
- Peer-to-peer trades through Telegram groups, often using cash deposits or mobile wallet transfers
- Miners who sold their Bitcoin directly to buyers in exchange for rials
Iran vs. Venezuela vs. Russia
Other sanctioned countries use crypto too. But Iran’s case is different.- Venezuela had hyperinflation too, but most crypto use was for buying imported goods. Iran’s outflows were about saving wealth, not spending it.
- Russia uses crypto mostly for trade with China and Iran. Most of its activity is institutional. Iran’s is personal.
- North Korea steals crypto. Iran’s citizens are giving theirs away-because they can’t hold onto it locally.
The Government’s Double Game
Here’s the twist: while the Iranian government cracked down on citizens using crypto, it was quietly mining Bitcoin itself. Iran has cheap electricity and a large population of tech-savvy youth. The state started licensing mining farms in 2023, claiming it was for "technological development." But by 2024, reports showed state-backed mining operations were selling Bitcoin on international markets to fund military projects. So while ordinary Iranians were jailed for trading crypto, the government was profiting from the same system. It’s a contradiction that tells you everything. The state doesn’t want its people to escape. But it’s happy to escape itself.
What This Means for the World
Iran’s crypto exodus isn’t just a local story. It’s a warning. Traditional sanctions-freezing bank accounts, cutting off SWIFT, blocking dollar access-are losing their power. When a country’s people can convert their last rial into Bitcoin in 10 minutes, sanctions become just a speed bump. The money still moves. The wealth still survives. The U.S. Treasury and FATF are scrambling to catch up. In 2025, they added new rules targeting "decentralized finance intermediaries" used by sanctioned nations. But the tools they’re using-blockchain analysis, wallet tracking-can’t stop someone who holds Bitcoin in a hardware wallet buried in a shoebox. Experts say this is the beginning of a new era. Sanctions used to be about cutting off money. Now, they’re about cutting off trust. And Iran proved that when trust in your government collapses, people will find another system-even if it’s built on code, not banks.What Comes Next?
Iran’s crypto outflows won’t stop in 2025. They’ll grow. Why?- Inflation is still above 45%
- The rial keeps falling
- International banks still refuse to work with Iranian businesses
- Bitcoin mining is now a national industry
- Young Iranians are more fluent in crypto than in banking
What This Means for You
You might live in a country with stable money. You might never need crypto to save your family. But Iran’s story isn’t just about sanctions. It’s about what happens when people lose faith in the system. If your currency collapses tomorrow, what would you do? Would you wait for the government to fix it? Or would you find a way out? Iranians didn’t wait. They built their own financial system-with code, courage, and a single word: Bitcoin.Why did Iranians choose Bitcoin over stablecoins like USDT?
Iranians chose Bitcoin because it doesn’t rely on a company to back it. Stablecoins like USDT are issued by Tether, which can freeze accounts or comply with U.S. sanctions. Bitcoin runs on a decentralized network-no company owns it, no government can shut it down. For people trying to protect their wealth from both inflation and sanctions, Bitcoin is the only asset that can’t be blocked or seized remotely.
Did the Iranian government benefit from crypto outflows?
Yes, indirectly. While the government cracked down on citizens using crypto, it allowed and even encouraged state-backed Bitcoin mining operations. These mines sold Bitcoin on international markets to generate hard currency revenue-funding military programs and government projects. So while ordinary Iranians were punished for trading, the state profited from the same system.
How did Iranians access international crypto exchanges?
Most used VPNs to bypass government internet restrictions. They connected to international exchanges like Binance or Kraken through these tools. Some used peer-to-peer platforms like LocalBitcoins or Telegram groups to trade directly with others who had access to foreign accounts. Over time, as exchanges blocked Iranian IPs, users became more creative-using proxy servers, burner phones, and cash-based trades to stay under the radar.
Is Iran’s crypto use unique compared to other sanctioned countries?
Yes. Unlike North Korea, which steals crypto through hacking, or Russia, which uses crypto for trade, Iran’s movement is driven by ordinary citizens trying to preserve personal wealth. The scale of retail-level outflows-mostly under $1,000-is unmatched. Even Venezuela, which had hyperinflation, didn’t see the same level of citizen-driven capital flight relative to its population size.
Will Iran’s crypto outflows continue in 2025 and beyond?
Almost certainly. Inflation remains above 45%, the rial continues to lose value, and international banks still refuse to work with Iran. The younger generation is digitally fluent and sees crypto as the only reliable store of value. Even if the government bans exchanges again, people will find new ways. The system is now embedded in daily life-not as a trend, but as a survival tool.