Israel Announces Seizure of $1.5M from Crypto Wallets Tied to Iran
Israel announces seizure of $1.5M from crypto wallets tied to Iran, marking one of its most high-profile financial crackdowns targeting the Islamic Revolutionary Guard Corps (IRGC). The move underscores growing concerns over how cryptocurrencies are being used to finance terrorism and evade global sanctions.
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187 Crypto Wallets Targeted by Israel
Israel’s Ministry of Defense confirmed on Monday that it ordered the seizure of 187 cryptocurrency wallets allegedly connected to the IRGC.
The announcement came from the National Bureau for Counter Terror Financing (NBCTF), which stated it was “convinced that the wallets are property of the IRGC” and were “used for the perpetration of a severe terror crime.”
Why the IRGC Is in Focus
The IRGC has long been sanctioned by the United States, the European Union, and Israel, all of which recognize it as a terrorist organization. By freezing crypto wallets, Israel aims to cut off a critical channel the group allegedly uses to bypass sanctions and fund its activities.
Blockchain Analysis Reveals Movement of Billions
Blockchain monitoring firm Elliptic reported that the wallets in question had received more than $1.5 billion in Tether’s USDT stablecoin over time.
However, Elliptic’s co-founder Tom Robinson clarified that while the wallets processed large sums historically, their current balance is only about $1.5 million—a small fraction compared to past transactions.
Questions Remain Over Wallet Attribution
Despite the seizure order, uncertainty remains. Elliptic stated it could not confirm whether the wallets definitively belong to the IRGC.
Meanwhile, Israel’s Ministry of Defense has not yet responded to requests for comment on how it linked the 187 wallets directly to the IRGC. This leaves open questions about the evidence used to support the seizure order.
Growing Global Scrutiny of Crypto and Terrorism
The case highlights a broader international debate: how terrorist groups may be leveraging cryptocurrencies to bypass traditional banking systems.
Governments worldwide are ramping up blockchain surveillance, compliance regulations, and cross-border cooperation to prevent digital assets from being exploited for illicit financing.
What This Means Going Forward
Israel’s action signals a stronger stance against crypto misuse by sanctioned entities. If successful, it could set a precedent for similar crackdowns globally, as regulators and governments tighten oversight of digital assets.
For now, the seizure of $1.5M from crypto wallets tied to Iran adds to mounting evidence that digital currencies remain both a tool for innovation and a potential risk in international security.
