Israel Seizes $1.5 Million from IRGC-Linked Crypto Wallets
Israel’s Ministry of Defense announced it seized $1.5 million from 187 cryptocurrency wallets. These wallets are allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The move aims to disrupt Tehran’s use of digital assets for sanctions evasion and terrorism financing.
The ministry’s National Bureau for Counter Terror Financing (NBCTF) stated it is “convinced that the cryptocurrency wallets” belong to the IRGC. The bureau said the wallets were used “for the perpetration of a severe terror crime.” The IRGC is designated a terrorist organization by the U.S., EU, and Israel.
Blockchain intelligence firm Elliptic reported the 187 wallets received about $1.5 billion in Tether (USDT) transactions over time. However, only $1.5 million remains in the wallets.
Tether confirmed that 39 of these addresses were blacklisted on September 13. This action prevents further USDT transactions and freezes the funds.
Questions on Wallet Ownership
Elliptic’s Co-Founder, Tom Robinson, said the firm could not independently verify the wallets’ ownership by the IRGC. He noted some addresses might belong to crypto services. These could be part of a larger infrastructure used by multiple customers.
Digital rights expert Amir Rashidi from the Miaan Group suggested Israel may have gained intelligence through hacking Iranian systems. He added that IRGC-linked financial operations often use intermediaries like exchanges and private companies.
Background on IRGC’s Use of Cryptocurrency
- In June 2025, pro-Israel hacking group Predatory Sparrow targeted Iran’s largest crypto exchange, Nobitex. They stole about $90 million in digital assets and sent them to inaccessible wallets. Nobitex is suspected of ties to the IRGC.
- In December 2024, the U.S. Treasury targeted crypto wallets linked to the IRGC-Qods Force. These wallets handled around $332 million in USDT.
- Recently, the U.S. Justice Department seized nearly $585,000 in USDT from Iranian businessman Mohammad Abedini. He allegedly supplied navigation systems for the IRGC’s Shahed drones.
Regulators, law enforcement, and blockchain experts are increasingly cooperating. Their goal is to prevent groups like the IRGC from moving funds and to protect global security.
