Countries targeted by Western sanctions have significantly increased their use of cryptocurrency to evade financial pressure. According to a Wall Street Journal (WSJ) report based on data from companies tracking cryptocurrency flows, sanctioned countries, led by Iran, Russia and North Korea, conducted approximately $100 billion worth of virtual currency transactions in 2025 alone.
This figure is exactly eight times the transaction volume recorded in 2024. The newspaper's report highlighted that because much of the sector remains unregulated and transactions are anonymous, it is almost impossible to establish tight control over this market.
Allegations of cryptocurrency use in arms purchases
Western officials and digital currency analysis firms speaking to the WSJ claimed that Iran and Russia use cryptocurrencies to purchase drones and weapon parts. Russia is also said to have used this method to pay the salaries of sailors who smuggle its sanctioned crude oil around the world.
North Korea, meanwhile, was stated to use digital assets to procure fuel and military equipment. The report noted that Western officials accuse Pyongyang of stealing cryptocurrency through 'cyber crimes,' while North Korea dismisses these claims as 'absurd slanders' and considers them an extension of Washington's hostile policy.
Kremlin: Sanctions are illegal, we have developed alternative mechanisms
Kremlin Spokesperson Dmitry Peskov told the WSJ that Russia considers the international sanctions imposed on it to be illegal under international law. Peskov noted that Moscow has 'developed and expanded alternative mechanisms that allow the economy to function normally.' The report added that Tehran did not respond to a request for comment on the matter.
US and UK sanction moves against crypto platforms
While Washington has temporarily suspended sanctions on Iranian oil amid ongoing negotiations for a possible peace deal with Iran, it continues to view sanctions as a primary pressure tool against global rivals. Last June, the U.S. Treasury imposed sanctions on four platforms, including Iran's largest cryptocurrency exchange Nobitex.
U.S. Treasury Secretary Scott Bessent announced the seizure of $1 billion in cryptocurrency belonging to Iran. Nobitex and another sanctioned platform, Bit Bin, denied allegations of facilitating illegal activities, arguing that their customers are ordinary individuals.
In the UK, authorities blacklisted HTX, one of the world's largest cryptocurrency platforms, in May on suspicion of supporting the Russian government. HTX announced it would work with officials to address concerns.
