TRM vs. ChainArgos: Reading the Tea Leaves of Iran’s Exchanges
TRM Labs recently published an analysis claiming Iran’s crypto economy is shrinking, with exchange inflows down 76% in July 2025 and confidence shaken after the $90M Nobitex hack. The report suggested that sanctions, cyberattacks, and liquidity freezes have weakened Iran’s reliance on digital assets, with illicit activity at Iranian exchanges just 0.9% of total flows.
But the findings quickly drew criticism from investigators like Richard Sanders and analytics firm ChainArgos, who argue TRM painted an incomplete picture. ChainArgos notes that while Nobitex volumes have collapsed, activity at smaller and newer Iranian exchanges is accelerating, spreading risk across more decentralized providers.
Their data highlights significant inflows into mid-tier platforms such as Aban Tether, Ramzinex, and several unnamed operators, including one that received over $15M in USDT in just six months. Critics warn that focusing too narrowly on Nobitex creates “confirmation bias” - declaring victory while crypto adoption simply disperses across harder-to-track services. The debate underscores a broader challenge for compliance teams: whether Iran’s crypto market is in retreat, or merely evolving into a more fragmented and resilient ecosystem.
This question of “shrinking vs. decentralizing” echoes recent findings from Crystal Intelligence, which exposed how terrorist groups like Hamas increasingly rely on small OTC brokers and lightly regulated exchanges to convert donations into cash. Their research shows millions flowing annually through such services in Lebanon - the same pattern ChainArgos sees emerging in Iran. The takeaway: it may be the smallest players, not the giants, that pose the greatest long-term compliance challenge.
Crypto and Cartels: U.S. Sanctions Chinese Firm for Fueling Fentanyl Pipeline
On September 3, 2025, the U.S. Treasury sanctioned Guangzhou Tengyue Chemical Co., Ltd., a Chinese chemical supplier accused of trafficking synthetic opioids and precursors into the U.S. The company allegedly marketed fentanyl ingredients, MDMA precursors, and even nitazenes - opioids more potent than fentanyl, alongside cutting agents like xylazine (“tranq”), which resists overdose reversal. Executives Huang Xiaojun and Huang Zhanpeng were personally designated, with Xiaojun tied to a Bitcoin wallet that received $1.27 million from darknet vendors, crypto ATMs, and drug sellers since 2021. The OFAC action, backed by the DEA and FBI, includes criminal indictments against the firm and its representatives. By naming a specific cryptocurrency address, U.S. authorities highlight how crypto has become embedded in cross-border drug supply chains.
Venus Protocol Reverses $13.5M Lazarus Hack in 12 Hours
What began as yet another high-profile DeFi phishing attack has ended in a rare win. A Venus Protocol user initially lost ~$13.5M after unknowingly approving a malicious transaction, an exploit later linked to North Korea’s Lazarus Group. But thanks to rapid detection by HExagate and Hypernative, Venus paused the protocol, ran emergency audits, and executed a governance vote that forced liquidation of the attacker’s wallet. Within 12 hours, stolen assets were recovered and returned - a near-unheard-of outcome in DeFi. The post-mortem revealed the victim was targeted via a malicious Zoom client, showing how phishing in 2025 increasingly blends traditional malware with blockchain permissions. With support from Binance, SlowMist, and PeckShield, this case stands out as a rare DeFi exploit where the good guys won, but it also underscores how dependent recoveries are on quick coordination and centralized interventions, even in supposedly “decentralized” finance.
More weekly top stories:
Untraceable Crypto Was a Dangerous Illusion to Crooks
El Salvador splits the bitcoin treasury
Crystal publishes the "2025 Crypto Hacks and Scams Report"
Chainalysis publishes the 2025 Global Adoption Index
Los Angeles County DA, With Support from TRM, Secures Return of Pig Butchering Funds
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