The Wall Street Journal (WSJ) reported that countries targeted by Western sanctions, including Iran, Russia, and North Korea, have dramatically increased their shift toward virtual currencies to avoid American pressure.
According to the newspaper's report, which is based on data from companies that track cryptocurrency flows, sanctioned countries conducted approximately $100 billion worth of cryptocurrency transactions in 2025 alone. This figure is eight times the transaction volume recorded in 2024.
Drone and weapon parts purchased with cryptocurrency
Western officials and digital currency analysis firms who spoke to the WSJ suggested that Iran and Russia used cryptocurrencies to purchase drones and weapon parts. Russia also used this method to pay the salaries of sailors who smuggle its sanctioned crude oil around the world.
North Korea, meanwhile, used 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 allegations as "absurd slander" and considers them an extension of Washington's hostile policy.
Kremlin emphasizes 'alternative mechanisms'
Kremlin spokesman 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 sanctions Iran's largest crypto platform
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. The US Treasury imposed sanctions on four platforms last June, including Nobitex, Iran's largest cryptocurrency exchange.
US Treasury Secretary Scott Bessent announced the seizure of $1 billion in cryptocurrency belonging to Iran. Nobitex and another sanctioned platform, Bit Bin, denied allegations that they facilitated illegal activities, arguing that their customers are ordinary individuals.
UK blacklists HTX
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.
The WSJ noted that because much of the sector is unregulated and transactions are anonymous, establishing tight control over this market is nearly impossible.
