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Israel announces seizure of $1.5M from crypto wallets tied to Iran
Israel's Ministry of Defense is seizing 187 crypto wallets tied to Iran's Islamic Revolutionary Guard Corps (IRGC), allegedly linked to terrorist activities. The wallets reportedly received $1.5 billion in Tether's USDT but currently hold $1.5 million. This action builds on previous efforts to disrupt Iranian use of cryptocurrency circumventing sanctions.
Key points
- Israel's Ministry of Defense has ordered the seizure of 187 crypto wallets linked to the IRGC.
- The IRGC is recognized as a terrorist organization by the U.S., EU, and Israel.
- The wallets have previously received $1.5 billion in USDT, but currently only hold $1.5 million.
- Elliptic could not confirm the wallets' ownership but noted they could be linked to exchanges, not directly to the IRGC.
- Amir Rashidi suggested that telemetry data may have been collected through hacking or monitoring.
- This seizure follows previous Israeli attempts to target Iranian cryptocurrency assets, including a hack of Nobitex.
Why it matters
- The use of cryptocurrencies for circumventing sanctions has increased, particularly by nations under economic pressure.
- The trend of leveraging blockchain for both financial crime and state-sponsored actions is rising as nations adapt to digital economies.
- In 2025, trends suggest growing scrutiny on cryptocurrency regulation and tracking, especially involving sanctions.
Israel's seizure of crypto wallets linked to the IRGC highlights ongoing tensions and the innovative use of cryptocurrency in geopolitical conflicts, marking a significant development in the battle against state-sponsored terrorism and sanction evasion.