tl;dr
Israel’s Ministry of Defense seized 187 cryptocurrency wallets linked to Iran’s IRGC, allegedly used for laundering $1.5 billion in Tether (USDT), now holding $1.5 million. The action, authorized under the 2016 Anti-Terrorism Law, aimed to disrupt funding for “severe terror crimes.” Blockchain firm ...
**Israel Seizes $1.5 Billion in Crypto Wallets Linked to Iran’s IRGC, Highlighting Global Crypto Crackdown**
Israel’s Ministry of Defense has taken a bold step in its battle against Iran’s Islamic Revolutionary Guard Corps (IRGC), seizing 187 cryptocurrency wallets allegedly used to launder funds. The move, announced by the National Bureau for Counter Terror Financing (NBCTF) and Defense Minister Israel Katz, underscores the growing role of cryptocurrencies in evading sanctions and the escalating global effort to trace and disrupt illicit financial networks.
The seized wallets, which once processed $1.5 billion in Tether (USDT), now hold approximately $1.5 million. Katz’s administrative seizure order cited the Anti-Terrorism Law of 2016, claiming the funds were either owned by the IRGC or used to finance “severe terror crimes.” The IRGC, designated a terrorist organization by multiple nations, has long faced accusations of leveraging crypto to bypass international sanctions.
Blockchain analytics firm Elliptic integrated the seized addresses into its monitoring system, enabling exchanges to flag suspicious transactions. However, the firm noted that some wallets might belong to third-party services, not the IRGC itself, complicating efforts to trace direct control. Tether, the issuer of the $110 billion stablecoin, blacklisted 39 of the wallets, blocking further transactions—a move enabled by the centralized structure of USDT.
This isn’t an isolated effort. The U.S. Justice Department recently seized $584,741 in USDT linked to the IRGC’s drone program, while the U.S. Treasury sanctioned an Iranian individual who funneled $332 million in Tether to Yemen’s Houthi movement with IRGC support. Pro-Israel hacking groups, like Gonjeshke Darande, have also targeted Iranian exchanges, draining $90 million in 2024.
Analysts warn that while cryptocurrencies offer transparency, their decentralized nature makes them attractive to sanctioned entities. “Rumors of IRGC using crypto to circumvent sanctions have persisted for years,” said Amir Rashidi of the Iran-focused nonprofit Miaan Group. “Some cases involve complex networks where exchanges aren’t directly tied to the IRGC but still enable illicit activity.”
The crackdown reflects a broader trend: governments are increasingly using blockchain tools to track and freeze assets, even as criminals adapt. For now, the seizure of billions in crypto wallets signals a new front in the war against state-sponsored terror financing—one where digital currencies, once seen as a tool for freedom, are now a battleground for global security.
As the IRGC and other groups refine their crypto strategies, the question remains: Can regulators stay ahead of a technology designed to outmaneuver traditional financial systems? The answer may shape the future of both finance and geopolitics.