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Israel’s Ministry of Defense has ordered the seizure of 187 cryptocurrency wallets allegedly connected to Iran’s Islamic Revolutionary Guard Corps (IRGC). The National Bureau for Counter Terror Financing (NBCTF) stated that the wallets were used for financing terrorism and confirmed that their assets were tied to a designated terrorist organization.
According to blockchain analytics firm Elliptic, the wallets processed about $1.5 billion in Tether (USDT) transactions on the TRON blockchain. However, most funds had already been moved, leaving only $1.5 million at the time of seizure. Tether later confirmed that it blacklisted 39 of the wallets, preventing further use of the stablecoin.
Israel’s order comes as part of an effort to counter the use of digital assets in sanctions evasion and terror financing. Officials emphasized that the listed addresses were directly linked to the IRGC, which faces sanctions from Israel, the European Union, and the United States.
Questions remain regarding attribution. Elliptic’s co-founder, Tom Robinson, said that while the wallets handled large transaction volumes, his firm could not independently verify ownership by the IRGC. He also noted that some of the addresses might belong to exchanges or service providers used by multiple clients.
Amir Rashidi, an expert on digital rights from the Miaan Group, suggested that cyber operations against Iranian systems might have given Israel intelligence. He also noted that IRGC financing often goes through middlemen, including private companies and crypto exchanges, to make the connection to sanctioned entities more challenging to trace.
The challenge of verification reflects broader issues in tracing digital finance. Crypto wallets remain pseudonymous, and without direct intelligence, identifying their true operators remains a complex task.
This move is part of the worldwide effort to undermine Iran's financial networks. In June 2025, the pro-Israel hacking group Predatory Sparrow attacked Nobitex, Iran's largest cryptocurrency exchange, resulting in a $90 million loss. Nobitex is believed to be linked to the IRGC.
Earlier, in December 2024, the US Treasury sanctioned wallets linked to the IRGC-Qods Force, which had handled around $332 million in USDT. More recently, the US Department of Justice seized $585,000 in USDT from an Iranian businessman accused of supplying drone components to the IRGC.
Authorities worldwide are increasingly targeting TRON-based USDT, which has become a favored channel for illicit finances due to its lower oversight compared to Ethereum. Despite these enforcement actions, USDT continues to be one of the most popular digital assets in global markets, and transactions remain close to peak levels.
The seizure highlights increasing collaboration among regulators, blockchain analytics companies, and financial crime agencies. Tether, TRON, and enforcement bodies have collaborated to freeze known wallets linked to scams and terrorist financing.
Despite the potential risks of seizures and blacklisting that restrict access to illicit funds, the majority of blockchain network transactions are permissionless. Analysts caution that the IRGC and other Iranian factions may continue to find different ways to circumvent restrictions. For now, Israel's move puts pressure on Tehran's finances while signaling to the broader crypto industry that oversight of stablecoin transactions is intensifying.
Also Read: Bitcoin & Ethereum Tumble Amid Iran-Israel Crisis: What Comes Next?
