When US-Israeli strikes on Iran began last weekend, localcrypto activity did not explode in a rush for the exits. Instead, transactionvolumes and flows on Iranian platforms fell sharply as authorities enforcedsweeping internet restrictions and exchanges shifted into defensive operations.TRM Lab's analysis shows that Iran’s largest exchange, Nobitex,recorded around USD 3 million more in combined inflows and outflows around thestrikes, but these movements remain within its historic operating range andlikely reflect internal treasury shifts rather than capital flight.However, despite the escalating conflict in Iran, cryptotraders are increasingly treating Bitcoin as a financial lifeline, using it tohedge against domestic uncertainty and potential restrictions on the bankingsystem.Amid the escalating conflict in Iran, many citizens are turning to Bitcoin as a financial lifeline. Reports and on-chain data shows increased buying activity followed by large withdrawals from local exchanges into self-custody wallets.BITCOIN IS FREEDOM FOR 🇮🇷 https://t.co/9JKx1aMv6o pic.twitter.com/BysoXM1Bgt— Satoxis (@satoxis) March 3, 2026Blackouts Choke LiquidityIran’s crypto slowdown begins with the internet switch.Connectivity reportedly fell by about 99% as the regime imposed severerestrictions, a playbook it used during the 2025 Iran-Israel conflict andearlier mass protests.Local exchanges also share key infrastructure, whichmagnified the shock. Wallex attributed a temporary outage to a power problem atthe Asiatech data center, a facility Nobitex also uses in its hosting stack.That single point of failure underscores how physical dependencies can rippleacross supposedly decentralized markets.You may also like: Gold Price Tests $5,400, Oil Jumps 13% as Strait of Hormuz Shuts: Iran War Rocks MarketsTrading volumes between February 27 and March 1 fell byroughly 80%, matching both a retreat in risk appetite and simple inability toreach platforms in real time. Nobitex Flows: Noise, Not a Bank RunAgainst this backdrop, Nobitex’s wallets drew attention. TRMidentified an extra USD 3 million in activity on February 28 versus the priorday, driven in part by an internal transfer on Polygon from a hot wallet tocold storage. Analysts also flagged a separate cold storage movement of morethan USD 35 million from a Nobitex hot wallet, but classified it as routineinfrastructure liquidity management, not a sign of large-scale withdrawals. Nobitex has reportedly processed around USD 5 billionin volume since the start of 2025, making it the central hub of Iran’s cryptomarket. In that light, the observed transfers sit within normal operationalranges, even if they occurred during a period of heightened geopoliticaltension. Exchanges Move into Risk ContainmentMajor domestic venues responded to the crisis with acoordinated shift into risk management mode. Bitpin urged users to avoidemotional trading and prepare for connectivity problems, framing the conflictas an operational risk event rather than an opportunity.Wallex suspended crypto withdrawals indefinitely as it citedinfrastructure instability, while Aban Tether halted both crypto and rialwithdrawals to contain outflows.Nobitex kept deposits and withdrawals open “to the extentpossible” but warned clients to expect delays and shallower markets. Ramzinexpaused crypto deposits and withdrawals while stressing that client assets satin cold wallets, and Tabdeal switched to twice-daily batch withdrawals withwarnings of delays of up to 24 hours.In aggregate, exchanges stayed online but throttledleverage, withdrawals, and execution quality to manage stress in a constrainedenvironment.Central Bank Pulls the USDT BrakeThe most consequential intervention came from Iran’s CentralBank. Under its direction, several exchanges, including Nobitex, Wallex, Bitpinand Tabdeal, temporarily suspendedtrading in the USDT–toman pair, the primary bridge between dollar-linkedstablecoins and the rial.USDT’s dollar peg and central role in local pricing likelymotivated the move. By halting this pair, authorities slowed rapid repricing ofthe rial and limited the speed at which savers could rotate into dollarexposure via stablecoins. TRM estimates that Iran-linked wallets have processed aroundUSD 11 billion in crypto since the beginning of 2025, placing the country amongthe larger national markets by on-chain volume. This article was written by Jared Kirui at www.financemagnates.com.