Iran-linked wallets have moved more than $3.84 billion through crypto exchange CoinEx since 2019, according to a Wall Street Journal report citing public blockchain analysis, raising new concerns over the role of offshore digital asset platforms in sanctions evasion.
The report said wallets with identifiable links to Iran used CoinEx to process billions of dollars in transactions despite U.S. sanctions intended to restrict Tehran’s access to the global financial system. CoinEx, a Seychelles-based exchange, emerged as a major conduit after larger platforms tightened compliance controls, according to the report.
The findings add to a broader pattern of U.S. concern over Iran’s use of cryptocurrency to access hard currency, move funds internationally and support sanctioned entities. Washington has already increased pressure on Iranian crypto infrastructure this year, including sanctions against Nobitex, Iran’s largest digital asset exchange, and several other domestic platforms.
The U.S. Treasury sanctioned Nobitex in June, accusing the exchange of facilitating transactions for Iran’s government and blacklisted institutions, including entities linked to the Islamic Revolutionary Guard Corps. Reuters has reported that Nobitex processed millions of dollars connected to Iran’s central bank and the IRGC, while blockchain analytics firms have estimated that Iran’s overall crypto activity reached roughly $8 billion to $10 billion in 2025.
CoinEx Becomes Latest Sanctions Flashpoint
The CoinEx report highlights how sanctions enforcement can shift activity from one exchange to another rather than eliminating it outright. After compliance actions at larger global platforms, Iran-linked users appear to have sought alternative venues where account controls, geographic restrictions or transaction-monitoring systems were less effective.
That pattern has become a recurring challenge for regulators. Crypto transactions are visible on public blockchains, but attribution is difficult and exchanges remain critical gateways for converting assets, accessing liquidity and moving value across jurisdictions. When one venue restricts sanctioned users, funds can move through self-custody wallets, smaller exchanges, brokers or decentralized services.
CoinEx has not been sanctioned by the U.S. in connection with the reported Iran-linked flows. However, the size of the alleged transactions could draw greater scrutiny from sanctions authorities, especially if investigators conclude the exchange failed to block prohibited activity or allowed designated entities to access liquidity.
The case also illustrates why stablecoins and offshore exchanges have become central to sanctions enforcement. Dollar-linked tokens can allow users in restricted jurisdictions to hold and transfer synthetic dollar exposure without direct access to U.S. banks, complicating traditional financial controls.
Crypto Enforcement Expands Beyond Domestic Iranian Exchanges
The regulatory implications extend beyond Iran. U.S. authorities have increasingly treated crypto platforms as part of the sanctions-enforcement perimeter, even when exchanges are based outside the United States. Treasury actions this year have also warned foreign financial institutions and counterparties that significant dealings with designated Iranian crypto platforms could create secondary-sanctions exposure.
For the crypto industry, the CoinEx report reinforces pressure on exchanges to strengthen know-your-customer screening, wallet monitoring and sanctions controls. It also raises difficult questions about how platforms should handle users in countries where ordinary citizens rely on crypto because access to global banking is restricted, while state-linked actors may use the same rails to evade sanctions.
The market impact is reputational as much as financial. Major exchanges have already faced enforcement actions over sanctions and anti-money-laundering failures, and fresh Iran-linked flow data could intensify calls for tighter supervision of offshore venues.
For policymakers, the reported $3.84 billion in CoinEx flows underscores the limits of traditional sanctions in a blockchain-based financial system. Public ledgers make illicit movement easier to trace after the fact, but preventing access in real time still depends heavily on exchange compliance, stablecoin issuer cooperation and cross-border enforcement.
