Iran Accepting Crypto Payments for Weapons-But This May Not Help It Evade Sanctions

Iran’s Ministry of Defence Export Center (Mindex) has announced it is prepared to accept cryptocurrency payments for military weapons contracts. This includes the sale of ballistic missiles, warships, and other advanced systems. The move is part of broader efforts to bypass international sanctions.

Mindex, the state-run arms export agency, states on its website that there is no problem in implementing contracts despite sanctions. It assures buyers that purchased products will be delivered promptly. The agency is affiliated with Iran’s Ministry of Defence and Armed Forces Logistics (MODAFL), a U.S.-sanctioned entity since 2007.

Mindex claims to have client relationships with 35 countries and promotes its extensive inventory of military equipment. Its website features products such as rockets, missiles, hovercrafts, and data services. The agency also highlights barter arrangements and Iranian rial payments as alternative settlement options.

How Is the Use of Crypto in Arms Deals Viewed by U.S. Authorities and Blockchain Analysts?

The U.S. Treasury has repeatedly targeted Mindex and related networks. Washington has sanctioned multiple entities involved in facilitating Iran’s arms and oil trade through shadow banking and cryptocurrency networks. Recent designations have focused on front companies and procurement networks used to move funds outside formal financial channels.

Blockchain analysts note that while Iran has adopted crypto for sanctions evasion, the Mindex website may not be a direct transactional platform. The site lacks integrated payment infrastructure, shopping carts, or checkout processes. Instead, it serves as a signaling and intake mechanism for potential buyers.

Mindex’s use of cryptocurrency is not new. For years, Iran has used digital assets to facilitate oil and arms sales. The U.S. Treasury identified two Iranian nationals who helped process $100 million in crypto transactions for oil sales between 2023 and 2025. These actions are part of Iran's larger financial shadow network.

What Does the Move Signify About Iran's Broader Strategy to Bypass Sanctions Using Digital Assets?

The shift to crypto reflects Iran’s ongoing efforts to circumvent traditional financial systems. As international sanctions continue to tighten, the regime has increasingly turned to barter trade, shadow fleets, and digital assets like Bitcoin. The U.S. has expanded sanctions lists and targeted the use of stablecoins and front companies to disrupt these networks.

Despite Iran’s adoption of crypto, experts argue that blockchain transparency can aid enforcement. The U.S. has successfully traced and disrupted complex networks involved in laundering funds for Iran’s Revolutionary Guard and defense ministry. These efforts highlight the growing importance of blockchain analytics in sanctions enforcement.

The Mindex website explicitly states that sanctions do not prevent contract implementation. This messaging is part of Iran’s broader strategy to reassure foreign buyers and maintain its arms export business. However, buyers face regulatory risks, including potential secondary sanctions and exclusion from global financial systems.