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Israel Seizes $1.5B in Crypto Wallets Linked to Iran’s IRGC
Israel’s Ministry of Defense has ordered the seizure of 187 cryptocurrency wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC), marking one of the largest crypto crackdowns linked to sanctioned entities.
$1.5B in Tether Transactions Under Scrutiny
The move was announced by Israel’s National Bureau for Counter Terror Financing (NBCTF) and Defense Minister Israel Katz, citing powers under the Anti-Terrorism Law of 2016. According to officials, the wallets had once processed $1.5 billion in Tether (USDT) but currently hold about $1.5 million. Katz stated in the Administrative Seizure Order that the funds were either IRGC property or used to commit “severe terror crimes.”
The IRGC is designated as a terrorist organization by Israel, the U.S., the European Union, Canada, and the U.K., placing heavy restrictions on its financial operations.
Blockchain Firms and Stablecoin Issuers React
Blockchain analytics firm Elliptic has already integrated the seized wallet addresses into its monitoring systems, enabling exchanges and institutions to screen for related activity. The company noted that while the wallets received the funds, not all may be directly controlled by the IRGC, as some could belong to services processing transactions for multiple clients.
Meanwhile, Tether, issuer of the $110 billion-plus stablecoin, moved swiftly by blacklisting 39 wallets tied to the case on September 13, preventing further transactions. Tether has a history of cooperating with law enforcement, leveraging its centralized control structure to freeze illicit funds.
A Wider Crackdown on IRGC’s Crypto Use
This seizure adds to a growing list of international actions targeting the IRGC’s expanding use of cryptocurrency to skirt sanctions. Past cases include a $90 million hack of Nobitex, sanctions against addresses funneling $332 million to Yemen’s Houthis, and a recent U.S. forfeiture of $584,741 USDT tied to the group’s drone program.
Analysts warn the latest action underscores both the traceability of blockchain and its potential role in sanctions evasion, keeping the IRGC’s crypto activities under global scrutiny.
