"Iron Chain Dragon's" effect was different in the anime. It could send cards equal to the Level of a monster it destroyed by battle from the opponent's Deck to the Graveyard.
In episode 10, Mr. Armstrong uses this card during his Ground Duel against Yusei Fudo. He Synchro Summons this card by tuning "Iron Chain Blaster" with "Iron Chain Coil" (as its Level was 4 in the anime). Since there were five Iron Chain Monsters in Armstrong's Graveyard, this card gained 1000 ATK (200 for each Iron Chain monster in Armstrong's Graveyard). "Iron Chain Dragon" then attacks and destroys "The Kick Man" (whose ATK was 2300 due to it being equipped with "Axe of Despair"). This card's second effect then activates, forcing Yusei to send the top three cards of his Deck to the Graveyard (as "The Kick Man" was Level 3). The effect of "Paralyzing Chain" then activates, inflicting 300 damage to Yusei. This card remained on the field until the Duel was over.