Iran's IRGC Evades Sanctions Using UK Companies to Move $1B in Stablecoins

A new investigation by blockchain analytics firm TRM Labs exposes how Iran's Islamic Revolutionary Guard Corps (IRGC) systematically bypassed international sanctions using cryptocurrency. According to the upcoming 2026 Crypto Crime Report, the IRGC moved roughly $1 billion in stablecoins through two UK-registered companies since 2023. This operation represents one of the largest documented cases of state actors leveraging digital assets for sanctions evasion.

The report details how the IRGC used corporate fronts registered in the United Kingdom to create a veneer of legitimacy. These companies facilitated transactions primarily involving dollar-pegged stablecoins like Tether (USDT) and USD Coin (USDC). By operating through entities subject to lighter regulatory scrutiny than Iranian institutions, the IRGC converted oil revenues and other sanctioned funds into stablecoins. These digital assets were then moved across blockchain networks to exchanges and service providers in jurisdictions with lax compliance controls, ultimately converting them into fiat currency or other assets.

TRM's analysis relied on clustering algorithms to trace wallet addresses linked to the UK companies. The firm combined on-chain data with traditional financial intelligence, including corporate registries and banking records, to establish connections between blockchain activity and IRGC operatives. Key findings include:

• Volume and Frequency: Over 12,000 transactions averaging $83,000 each, peaking during periods of heightened sanctions enforcement.
• Obfuscation Tactics: Use of decentralized exchanges and cross-chain bridges to fragment transaction trails.
• Stablecoin Preference: Tether dominated transactions (estimated 85%) due to its liquidity and prevalence on less-regulated platforms.

This case underscores critical limitations in current sanctions regimes. While blockchain analysis can identify patterns, attribution remains challenging without coordinated intelligence sharing. The UK companies exploited gaps in corporate registry verification, registering with minimal due diligence. Regulatory frameworks also lag in addressing stablecoins' role in illicit finance, as most compliance tools focus on traditional banking channels.

Practical implications are significant:

1. Sanctions Efficacy: Traditional banking controls are circumvented, requiring regulators to develop crypto-native monitoring standards.
2. Stablecoin Governance: Issuers like Tether face pressure to enhance wallet screening, though technical constraints limit real-time intervention.
3. Corporate Transparency: UK authorities must strengthen verification for company registrations to prevent abuse.

The full 2026 Crypto Crime Report will include additional case studies and methodologies. For now, this investigation highlights how pseudonymous blockchain networks and inadequate corporate oversight enable state-sponsored evasion at scale. As TRM notes, addressing this requires integrating blockchain analytics into national security frameworks while pressuring stablecoin issuers to implement stricter transaction monitoring.