Iran and Russia Linked to Cryptocurrency-Funded Military Drone Acquisitions

A recent report has shed light on the increasing use of cryptocurrency by Iran and Russia to acquire military drones.

The study, conducted by blockchain analytics firm Chainalysis, found that sanctioned entities in both countries are using cryptocurrency to procure drone components restricted by export controls.

The Shahed drone program, widely deployed in the ongoing conflict with the U.S. and Israel, relies heavily on components sourced through third-country procurement networks.

E-commerce platforms such as Alibaba Group Holding Limited are being used to sell equipment to 'opaque' identities, making it difficult to track the origin of the drones.