Chainalysis: Russia- and Iran-Linked Groups Use Crypto to Buy Military Drones
Blockchain analytics company Chainalysis said groups linked to Russia and Iran are using cryptocurrency to pay for military drones and critical components, circumventing international sanctions and scrutiny by the traditional financial system. Although cryptocurrency is pseudonymous, its public and difficult-to-alter onchain transaction records also make fund flows an important lead for law-enforcement investigations.
A recent Chainalysis report found that the procurement networks have used onchain transfers to support military supply chains. The available information did not specify the report’s publication date, the total amount involved or the timing of individual transactions. The report said analyzing wallet addresses, fund-transfer routes and counterparties can help identify sanctions-evasion procurement by Russia- and Iran-linked groups, as well as nodes in their supply chains.
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The history behind this eventSanctioned Iran-Linked Entities Moved $3.8 Billion in Crypto Through CoinEx
The United States has long used financial sanctions to restrict Iran’s access to dollars and cross-border payment services, prompting local businesses to turn to cryptocurrency. TRM Labs tracked about 60 wallets linked to sanctioned Iranian entities. Their transactions involved CoinEx and Nobitex, highlighting sanctions-compliance and anti-money-laundering risks at centralized exchanges.
A TRM Labs report said the wallets had moved more than $3.84 billion in cryptocurrency through CoinEx since 2019. About $2.7 billion, or roughly 70% of the total, went to Nobitex, Iran’s largest domestic exchange. CoinEx subsequently denied serving as a funding gateway for sanctioned Iranian crypto companies, leaving the two sides at odds over the exchange’s responsibility.
Crypto Sanctions Evasion Surged 700% in 2025, Chainalysis Says
U.S. blockchain analytics firm Chainalysis said Russia, Iran and North Korea have long used cryptocurrencies to circumvent financial sanctions. Onchain assets can move rapidly across borders, weakening the impact of sanctions and driving up illicit transaction volumes worldwide, with stablecoins emerging as the main tool.
Chainalysis reported that crypto-based sanctions evasion reached $104 billion in 2025, surging 700% from the previous year and pushing total illicit transaction value to a record high. Stablecoins accounted for about 84% of illicit transaction volume, while the ruble-pegged A7A5 has become an important channel for Russian companies moving funds.
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