Israel’s Ministry of Defense has announced the seizure of $1.5 million from 187 cryptocurrency wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC), in the latest move to disrupt Tehran’s use of digital assets for sanctions evasion and terrorism financing.
The ministry’s National Bureau for Counter Terror Financing (NBCTF) said it was “convinced that the cryptocurrency wallets” listed were property of the IRGC and used “for the perpetration of a severe terror crime.” The IRGC is sanctioned as a terrorist organization by the United States, the European Union, and Israel, among others.
According to blockchain intelligence firm Elliptic, the 187 wallets had cumulatively received around $1.5 billion in Tether (USDT) stablecoin transactions over time. However, the wallets currently hold only $1.5 million.
Tether confirmed that 39 of the addresses were blacklisted on September 13, preventing them from making further USDT transactions and effectively freezing the funds.
Questions on attribution
Elliptic’s Co-Founder, Tom Robinson, noted that while the wallets had large transaction volumes, the firm could not independently confirm whether they belonged to the IRGC. He also pointed out that some of the addresses may belong to cryptocurrency services and be part of a larger infrastructure used by multiple customers.
Digital rights expert Amir Rashidi of the Miaan Group suggested Israel may have obtained intelligence through hacking Iranian systems. He added that IRGC-linked financial operations often rely on intermediaries such as exchanges and companies that appear to be private.
Broader context of IRGC’s crypto use
This is not the first confrontation involving Iran’s crypto holdings. Back in June 2025, a pro-Israel hacking group called Predatory Sparrow hit Iran’s biggest crypto exchange, Nobitex. They stole about $90 million worth of digital assets, then “burned” the funds by sending them to inaccessible wallets. Nobitex has long been suspected of having ties to the IRGC.
Before that, in December 2024, the U.S. Treasury went after crypto wallets linked to the IRGC-Qods Force that had handled around $332 million in USDT. And just recently, the U.S. Justice Department seized nearly $585,000 in USDT from Iranian businessman Mohammad Abedini, who allegedly supplied navigation systems for the IRGC’s Shahed drones.
With regulators, agencies, and blockchain experts working together now, it’s getting harder for groups like the IRGC to move funds around. The goal is simple: to protect digital finance and keep global security in check.
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