The Central Bank of Iran (CBI) systematically acquired at least $507 million in Tether (USDT) to bypass global banking sanctions and stabilize its collapsing currency, according to a new investigation by blockchain intelligence firm Elliptic.
This marks one of the first confirmed instances of a state entity using open-market crypto operations to defend a fiat peg. The revelation comes as USDT holds its peg at $1.00 (+0.01%), while regulatory scrutiny on stablecoin issuers intensifies globally.
The Sanctions Bypass Mechanism
Elliptic’s analysis, corroborated by leaked documents, details how the CBI utilized intermediaries to execute the strategy. The bank allegedly funneled funds through Modex, a Tehran-based business acting as a proxy, to purchase USDT using Emirati Dirhams (AED) in April and May 2025.
These funds were initially routed to Nobitex, Iran’s largest cryptocurrency exchange. The CBI then reportedly used the dollar-pegged liquidity to conduct open market operations, buying rials to arrest the currency’s freefall, effectively replicating the function of foreign reserve accounts blocked by US sanctions.
The transparency of blockchains means that these illicit flows can be tracked and blocked. Elliptic has identified a network of cryptoasset wallets used by the Central Bank of Iran (CBI) to acquire $507 million in USDT.
The Shift: From Exchanges to Bridges
The operational security of the CBI’s network collapsed in mid-2025. Following a $90 million hack of Nobitex on June 18, 2025, attributed to the pro-Israel hacktivist group Gonjeshke Darande, the central bank abruptly altered its custody trails.
Elliptic noted the CBI ceased direct transfers to Nobitex, pivoting instead to cross-chain bridges. Funds were moved from the Tron network to Ethereum, a likely attempt to obfuscate the origin of the capital before settling payments. Tether (USDT) issuers responded during this period, blacklisting several CBI-linked addresses on June 15, 2025, and freezing approximately $37 million in assets.
Institutional Context
This report validates long-standing fears among Western regulators that sovereign actors are integrating stablecoins into their state-level evasion stacks. For Tether, the disclosure adds pressure. While the issuer successfully froze a portion of the funds, the sheer volume ($500M+) moved prior to enforcement highlights the speed gap between on-chain settlement and compliance intervention.
